Real Estate and Housing http://www.wisebread.com/taxonomy/term/4810/all en-US Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/happy_young_family_0.jpg" alt="Happy young family" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Talk to anyone who bought a house in the mid-2000s and they'll probably relate a painless, smooth process. It was a period of easy lending. Whether a borrower had bad credit, good credit, or no credit (am I starting to sound like a used-car salesman?), mortgage lenders handed out no-money down mortgages like they were going out of style &mdash; even qualifying some borrowers without verifying their income and assets. As we know, these loose lending standards helped cause the housing bubble to burst which led to the financial crisis.</p> <p>More than a decade later, mortgage lending standards have tightened, with lenders putting a lot of emphasis on creditworthiness. This isn't an issue for borrowers with good credit. But if your credit score isn't up to snuff, you may have to delay your homeownership dreams.</p> <p><a href="http://www.wisebread.com/5-ways-to-improve-your-credit-score-fast" target="_blank">Repairing a low credit score</a> is obvious fix in this situation. This involves paying your bills on time, correcting errors on your credit report, and keeping your debt to a minimum. But what if you're in the process of repairing your credit? It takes time to build a low credit score back up. So while your payment history for the past six to 12 months might be excellent, your credit score could still struggle.</p> <p>No worries. If your recent credit activity demonstrates a pattern of responsibility, it is possible to get a mortgage with weak credit &mdash; even with strict lending requirements.</p> <h2>Learn about FHA home loans</h2> <p>Conventional home loans are a popular choice because they require as little as 5 percent down and include temporary mortgage insurance. Lenders charge private mortgage insurance (PMI) when conventional borrowers put down less than 20 percent (and then cancel premiums once the property has 20 percent equity). The downside of a conventional loan is that lenders typically require a minimum 620 credit score.</p> <p>A 620 credit score is lower than the loan's previous minimum of 680. Even so, you could find yourself several points shy of the minimum guideline. If that's the case, check out FHA home loans insured by the Federal Housing Administration.</p> <p>This is an affordable alternative to a conventional loan, particularly if you have a weak credit score. Whereas a conventional loan requires a 620 credit score, an FHA loan allows for much lower credit scores &mdash; as low as 500 to 580. This is ideal if you've made a few credit mistakes in the past, yet you're on track to improve your credit score.</p> <p>Anyone can apply for an FHA loan, but it's certainly a fitting solution if you've filed for bankruptcy or experienced a past foreclosure. Currently, borrowers are eligible for an FHA home loan one year after a Chapter 13 bankruptcy, two years after a Chapter 7 bankruptcy, three years after a foreclosure, and three years after a short sale (one year in cases of extenuating circumstances, such as a job loss or illness). (See also: <a href="http://www.wisebread.com/is-an-fha-home-loan-right-for-you?Ref=seealso" target="_blank">Is an FHA Home Loan Right for You?</a>)</p> <h2>Prepare for a higher down payment</h2> <p>Be prepared to fork over a larger down payment if you're buying with weak credit. Even though 20 percent down payments are no longer required by lenders, an FHA home loan does require a minimum 3.5 percent down &mdash; but only if your credit score is 580 or higher. If you apply for an FHA loan with a credit score between 500 and 579, your mortgage lender will require a minimum 10 percent down.</p> <h2>Choose a portfolio lender</h2> <p>Using a portfolio lender is another option with a low credit score. Because many banks sell their mortgages to investors, they have to ensure these loans meet the requirements set forth by Fannie Mae and Freddie Mac, the government-sponsored entities that buy most of the home mortgages in the U.S. This limits the number of bad credit score loans approved by mortgage lenders.</p> <p>But if a mortgage lender or bank doesn't sell a percentage of its loans, they have the freedom and flexibility to approve riskier loan applicants &mdash; but only if the borrower has compensating factors to offset weak credit like a higher down payment, high income, or substantial assets. These loans are known as portfolio loans because the lender retains the loan as part of its own investment.</p> <h2>Expect a higher interest rate</h2> <p>Even though some mortgage lenders and loan programs accommodate weak credit, there's no escaping a higher mortgage rate. A low credit score and higher rates go hand-in-hand. Because the size of a borrower's down payment and credit affects mortgage rates, people with the lowest credit scores usually pay the highest rates. A higher rate increases borrowing costs and monthly payments, which makes homeownership more expensive in the long run.</p> <p>Of course, as your credit score improves, so does the opportunity to refinance your mortgage loan. If you refinance down the road and snag a lower rate, you'll reduce the amount you pay in interest and potentially lower your mortgage payment.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fweak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FWeak%2520Credit-%2520You%2520Can%2520Still%2520Get%2520a%2520Mortgage%2520Despite%2520Tough%2520Lending%2520Standards.jpg&amp;description=Weak%20Credit%3F%20You%20Can%20Still%20Get%20a%20Mortgage%20Despite%20Tough%20Lending%20Standards"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Weak%20Credit-%20You%20Can%20Still%20Get%20a%20Mortgage%20Despite%20Tough%20Lending%20Standards.jpg" alt="Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-really-need-a-20-percent-down-payment-for-a-house">Do You Really Need a 20 Percent Down Payment for a House?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/make-these-5-money-moves-before-applying-for-a-mortgage">Make These 5 Money Moves Before Applying for a Mortgage</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-to-consider-before-buying-a-home-when-youre-single">5 Things to Consider Before Buying a Home When You&#039;re Single</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-mortgage-details-you-should-know-before-you-sign">5 Mortgage Details You Should Know Before You Sign</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-build-equity-in-your-home">How to Build Equity in Your Home</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing bad credit buying a home credit score down payments equity fha loan home loans homeownership interest rates mortgages portfolio lenders Thu, 05 Oct 2017 08:30:11 +0000 Mikey Rox 2030975 at http://www.wisebread.com How Your New Job Might Affect Your Mortgage Application http://www.wisebread.com/how-your-new-job-might-affect-your-mortgage-application <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-your-new-job-might-affect-your-mortgage-application" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/couple_stylish_paperwork_635876724.jpg" alt="Woman learning how new job might affect mortgage application" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You just got a new job. Congratulations! New beginnings are an exciting part of life. If you're in the market to qualify for a new mortgage, your new beginning could have an impact on your mortgage application. Here's what you need to know. (See also: <a href="http://www.wisebread.com/5-money-moves-that-will-ruin-your-mortgage-application?ref=seealso" target="_blank">5 Money Moves That Will Ruin Your Mortgage Application</a>)</p> <h2>Continuity of some kind is key</h2> <p>Lenders like to see financial and career stability. If you've recently changed jobs, that's OK, provided that lenders see some kind of continuity.</p> <p>For example, if your new job is in the same field that you've been in for the past two years, the lender would probably be comfortable with that. This is especially true if your new job is a promotion in title, responsibility, or salary. If you took a pay cut, but stayed in the same field, the lender would also likely find that acceptable, as long as your new income is at a level that is appropriate for the size of mortgage you want.</p> <h2>Stability and history in your field matters</h2> <p>Lenders start to get uncomfortable when you move into a brand-new field because they view that as a less stable work situation. That said, this is not an insurmountable problem. Be honest and upfront with your lender. Explain how your previous experience is applicable to your new field. This could take the form of your responsibilities, or similarity in the fields themselves.</p> <p>It is also helpful if you can show that your education and any other training you've received aligns with your new role. You could secure a reference letter from your new employer, too.</p> <p>Remember, getting a mortgage with a lender is a conversation. You aren't putting in an application as a faceless entity. The lender wants to know who you are, what you do, and, most importantly, how you will repay the mortgage. You need to paint a picture of yourself as a responsible professional on a stable career path.</p> <h2>The paperwork you need</h2> <p>In addition to a letter or contract, the lender will also need other paperwork to verify your income. If you have all of this paperwork together before going to the lender, your sense of organization and preparedness will work in your favor. You will need:</p> <ul> <li>Your job offer letter with the details of your start date, title, and compensation. This letter should be on official company letterhead.<br /> &nbsp;</li> <li>At least two pay stubs, though I have recently heard of lenders asking for three or four pay stubs.<br /> &nbsp;</li> <li>The contact information for your human resources department. The lender will eventually need to talk to someone at your company to confirm the information you've provided is legitimate.</li> </ul> <p>A new job and a new home are exciting prospects. Though continuity of employment eases the path to a new mortgage, many people buy a new home in conjunction with a new job. Be prepared with a solid, concise explanation of your decision to change jobs and have your paperwork in order. Also remember to shop around for a mortgage with a few different lenders to secure the best terms and rates. Happy house hunting!</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-your-new-job-might-affect-your-mortgage-application&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520Your%2520New%2520Job%2520Might%2520Affect%2520Your%2520Mortgage%2520Application.jpg&amp;description=How%20Your%20New%20Job%20Might%20Affect%20Your%20Mortgage%20Application"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20Your%20New%20Job%20Might%20Affect%20Your%20Mortgage%20Application.jpg" alt="How Your New Job Might Affect Your Mortgage Application" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christa-avampato">Christa Avampato</a> of <a href="http://www.wisebread.com/how-your-new-job-might-affect-your-mortgage-application">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/everything-you-need-to-know-about-freddie-mac-and-fannie-mae">Everything You Need to Know About Freddie Mac and Fannie Mae</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-mortgage-details-you-should-know-before-you-sign">5 Mortgage Details You Should Know Before You Sign</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-really-need-a-20-percent-down-payment-for-a-house">Do You Really Need a 20 Percent Down Payment for a House?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-ways-to-buy-a-house-without-a-mortgage">4 Ways to Buy a House Without a Mortgage</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career and Income Real Estate and Housing approval home loans income lenders mortgages new jobs paychecks stability Mon, 02 Oct 2017 08:30:16 +0000 Christa Avampato 2029141 at http://www.wisebread.com 6 Money Moves to Make After Buying Your First House http://www.wisebread.com/6-money-moves-to-make-after-buying-your-first-house <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-money-moves-to-make-after-buying-your-first-house" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/happy_woman_holding_keys_to_her_new_house.jpg" alt="Happy woman holding keys to her new house" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You bought your first home. This is an exciting conclusion to what was likely a long and winding road. As you are unpacking your boxes, settling in, and decorating your new digs, there are some smart money moves you should make immediately to keep the good times rolling.</p> <h2>1. Adjust your last will and testament</h2> <p>Now that you have a new home, you need to update your will. In this time of excitement, updating a will might feel like putting a damper on the fun, but it's critically important. You need to be responsible for protecting the future of your loved ones and your home. (See also: <a href="http://www.wisebread.com/dont-make-these-5-common-mistakes-when-writing-a-will?ref=seealso" target="_blank">Don't Make These 5 Common Mistakes When Writing a Will</a>)</p> <h2>2. Get rid of PMI as fast as you can</h2> <p><a href="http://www.wisebread.com/what-is-private-mortgage-insurance-anyway?ref=internal" target="_blank">Private mortgage insurance</a> (PMI) is a necessary fee for most people who buy a home with less than a 20 percent down payment. This can be a significant expense, sometimes costing thousands of dollars each year. Do whatever you can to get to that 20 percent equity mark so that you can drop the PMI payments.</p> <h2>3. Make a plan to pay a little extra every month</h2> <p>At the beginning of a mortgage, you are mostly paying interest and very little principal with every monthly payment. That ratio of interest to principal will decrease eventually, but it will take a few years.</p> <p>To more quickly pay down your mortgage, set aside a little extra every month for your mortgage payment. Why? Anything you pay above your monthly payment goes directly against the principal. (Just be sure those extra payments are going to principal; check with your mortgage lender.) The faster you reduce your principal, the faster you will pay off your home. A lower principal will also make it easier to refinance the mortgage down the line if you choose to do that in the future. (See also: <a href="http://www.wisebread.com/whats-faster-for-mortgage-payoff-100-month-extra-or-1-payment-year-extra?ref=seealso" target="_blank">What's Faster for Mortgage Payoff: $100/Month Extra or 1 Payment/Year Extra?</a>)</p> <h2>4. Replenish your emergency funds</h2> <p>Many people use a substantial part of their cash savings, if not all of it, when they buy their first home. It&rsquo;s crucial that you begin to <a href="http://www.wisebread.com/6-fast-ways-to-restock-an-emergency-fund-after-an-emergency?ref=internal" target="_blank">rebuild this emergency fund</a> as soon as you can.</p> <p>An emergency fund is necessary if you lose your job for any reason, have unexpected bills, or if you need to do emergency repairs on your home. Experts in the consumer finance field have varying opinions when it comes to how much to set aside in an emergency fund, but many suggest having three to six month's worth of expenses saved. Some more conservative advisers even suggest saving up enough to cover one year of expenses. Consider your lifestyle and personal risk profile to find the best target amount for you.</p> <h2>5. Reconsider your life insurance policy</h2> <p>Now that you have this beautiful new home, you will need to make sure the mortgage can be covered by your life insurance. You don&rsquo;t want your heirs to struggle to figure out what to do in the event that an unforeseen circumstance occurs.</p> <p>How much insurance do you need? Generally, the guideline for life insurance is 10 times your annual income plus any large debts like a home mortgage. Talk to your insurance company and/or financial adviser to get their perspective, and make any necessary adjustments. (See also: <a href="http://www.wisebread.com/5-reasons-why-life-insurance-isnt-just-for-old-people?ref=seealso" target="_blank">5 Reasons Why Life Insurance Isn't Just for Old People</a>)</p> <h2>6. Change your locks and install deadbolts</h2> <p>Safety is a huge part of homeownership, and it has financial implications. As soon as you have the keys in your hand, contact a locksmith to get all of the locks on your doors and windows changed, and install deadbolts on doors where you currently don&rsquo;t have them. The previous owners likely gave copies of their keys to neighbors, friends, family members, the dog walker, or people who did work on the home. You don&rsquo;t want those people to have access to what is now <em>your </em>house. You may also want to consider a home security system.</p> <p>All of these safety measures may provide a financial deduction on your homeowners insurance. Contact your insurance company to find out if you qualify for a reduction in your rate. (See also: <a href="http://www.wisebread.com/7-times-to-update-your-homeowners-insurance?ref=seealso" target="_blank">7 Times to Update Your Homeowners Insurance</a>)</p> <p>There is a desire to rest on our laurels after completing the purchase of a home. You should definitely bask in the glow of new homeownership, but this is also a time to remain financially vigilant. Remember that when it comes to your personal finances, remaining responsible and forward-thinking is the key to lasting success.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-money-moves-to-make-after-buying-your-first-house&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Money%2520Moves%2520to%2520Make%2520After%2520Buying%2520Your%2520First%2520House.jpg&amp;description=6%20Money%20Moves%20to%20Make%20After%20Buying%20Your%20First%20House"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Money%20Moves%20to%20Make%20After%20Buying%20Your%20First%20House.jpg" alt="6 Money Moves to Make After Buying Your First House" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christa-avampato">Christa Avampato</a> of <a href="http://www.wisebread.com/6-money-moves-to-make-after-buying-your-first-house">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/house-hunting-these-features-will-save-you-big-over-the-long-haul">House Hunting? These Features Will Save You Big Over the Long Haul</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate">The Fair Way to Split Up Your Family&#039;s Estate</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-buy-a-house-with-a-pool-until-you-can-answer-these-7-questions">Don&#039;t Buy a House With a Pool Until You Can Answer These 7 Questions</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-make-these-5-common-mistakes-when-writing-a-will">Don&#039;t Make These 5 Common Mistakes When Writing a Will</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing emergency fund estate planning first house homeowners insurance homeownership last will and testament life insurance new house private mortgage insurance safety Thu, 28 Sep 2017 08:01:06 +0000 Christa Avampato 2027477 at http://www.wisebread.com Is a 15-Year Mortgage a Good Idea? http://www.wisebread.com/is-a-15-year-mortgage-a-good-idea <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/is-a-15-year-mortgage-a-good-idea" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/coins_stack_in_columns_with_saving_book_and_paper_home.jpg" alt="Coins stack in columns with saving book and paper home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You're ready to buy a home, and it's time to choose a mortgage. Mortgage loans come in a wide variety of options, including everything from a standard 30-year, fixed-rate mortgage, to loans with interest rates that adjust every year.</p> <p>Then there's the 15-year, fixed-rate mortgage. It comes with an interest rate that doesn't change and is lower than the one you'd get with a 30-year loan. But because this loan has a shorter term, it also comes with a higher monthly payment.</p> <p>Should you consider a 15-year, fixed-rate home loan? Maybe. There are pros and cons to this type of mortgage.</p> <h2>The pros</h2> <p>Let's first look at some of the upsides to a shorter-term mortgage loan.</p> <h3>You'll pay a lot less interest</h3> <p>Say you take out a mortgage loan for $200,000. If you take out this loan as a 30-year, fixed-rate mortgage with an interest rate of 4.10 percent, you'll pay more than $140,000 in interest if you take the full three decades to pay off your loan.</p> <p>Say, instead, you take out that $200,000 as a 15-year, fixed-rate loan with an interest rate of 3.25 percent. You'd pay just under $53,000 in interest if you paid off this mortgage over its full term.</p> <p>That's a savings of about $87,000 in interest.</p> <h3>Your interest rate will be less</h3> <p>You pay less in interest on a 15-year, fixed-rate loan for two reasons. First, because the loan is paid back in half the time, you pay off a greater amount of its principal balance with each monthly payment. Secondly, 15-year loans come with lower interest rates than 30-year versions because you aren't holding the bank's money for as long.</p> <p>According to the Freddie Mac Primary Mortgage Market Survey, the average interest rate on a 30-year, fixed-rate loan stood at 3.78 percent as of September 2017. The survey showed the average rate on a 15-year, fixed-rate loan was 3.08 percent during the same time frame.</p> <p>If nabbing the lowest possible interest rate is important to you, a 15-year, fixed-rate mortgage is a good choice.</p> <h3>You'll free up your money faster</h3> <p>Because the term is cut in half, you'll pay off your mortgage faster if you go with the 15-year version. Once you've paid off your mortgage loan, you'll be able to spend or invest the dollars that once went to your lender.</p> <p>Just be aware that many homeowners never pay off their loans in full. You might refinance your 15-year loan to another type long before you pay it off. Or you might sell your home and move before you reach the end of your term.</p> <h2>The cons</h2> <p>Here are the downsides to a shorter-term mortgage.</p> <h3>Your monthly payment will be higher</h3> <p>Because you pay off a 15-year mortgage in half the time as you would a 30-year version, your monthly payments will be higher.</p> <p>How much higher? If you take out a $200,000 30-year, fixed-rate mortgage with an interest rate of 4.10 percent, your monthly payment, not including property taxes and homeowners insurance, would be about $966.</p> <p>If you take out that same $200,000 in the form of a 15-year, fixed-rate loan with an interest rate of 3.25 percent, your monthly payment would be about $1,400, again not including property taxes and insurance.</p> <p>That's a big difference. Yes, it might sound good to eliminate all the extra interest payments that come with a 30-year loan. But if you'll struggle to make the monthly payments that come with a 15-year loan, the shorter-term mortgage is not a good move.</p> <h3>There's less flexibility</h3> <p>If you're worried about the higher monthly payments of a 15-year mortgage, but also concerned about paying too much interest over the life of your loan, you can take out a 30-year, fixed-rate mortgage and pay a bit extra toward your loan's principal balance every month.</p> <p>Doing this often enough will put a dent in the amount of interest you pay. And if there's a tighter month in which you don't have as much extra money, you can simply make your required mortgage payment without sending along a bit of extra cash toward principal.</p> <p>However, if you take out a 15-year mortgage, you must make the higher mortgage payment each month. You don't have the option of paying less. If your budget is already tight, or if you're struggling with high amounts of other debt, the smaller payments of a 30-year loan might make more sense.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fis-a-15-year-mortgage-a-good-idea&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FIs%2520a%252015-Year%2520Mortgage%2520a%2520Good%2520Idea-.jpg&amp;description=Is%20a%2015-Year%20Mortgage%20a%20Good%20Idea%3F"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Is%20a%2015-Year%20Mortgage%20a%20Good%20Idea-.jpg" alt="Is a 15-Year Mortgage a Good Idea?" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/is-a-15-year-mortgage-a-good-idea">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-mortgage-details-you-should-know-before-you-sign">5 Mortgage Details You Should Know Before You Sign</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-long-does-it-take-break-even-with-a-home-refi">How Long Does it Take Break Even With a Home ReFi?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/is-it-safe-to-re-finance-your-home-close-to-retirement">Is it Safe to Re-Finance Your Home Close to Retirement?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-you-should-consider-an-adjustable-rate-mortgage">Why You Should Consider an Adjustable-Rate Mortgage</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing 15-year mortgage home loans interest rates monthly payments mortgages principal pros and cons short term loan Tue, 26 Sep 2017 08:30:10 +0000 Dan Rafter 2025923 at http://www.wisebread.com Buying a House? Here's Where to Keep Your Down Payment http://www.wisebread.com/buying-a-house-heres-where-to-keep-your-down-payment <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/buying-a-house-heres-where-to-keep-your-down-payment" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/saving_to_buy_a_house_or_home_savings_concept_0.jpg" alt="Saving to buy a house or home savings concept" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I am in the market to buy my first home in the next few years. I have been saving and researching for a long time, and have learned many of the ins and outs of home buying, thanks to real estate agents, financial advisers, and friends who have generously shared their expertise with me.</p> <p>Living in New York City, the trickiest part of the process is saving up for a down payment. I have been diligently stashing money away for the past two years, and have become curious about whether or not I am parking my funds in the best place. Here is what I discovered. (See also: <a href="http://www.wisebread.com/4-easy-ways-to-start-saving-for-a-down-payment-on-a-home?ref=seealso" target="_blank">4 Easy Ways to Start Saving for a Down Payment on a Home</a>)</p> <h2>The definition of a near-term purchase</h2> <p>The time horizon of your home purchase can dictate where to place your down payment savings. A near-term purchase is one that will occur in three years or less. If that fits your time horizon for buying a house, the best thing to do is to save your money in high-yield savings, money market, and CD (certificates of deposit) accounts. For near-term purchasers, the critical point of consideration is keeping your money liquid. Of course, you'll still want to compare interest rates from different banks, but keep in mind that you won't be earning a whole lot from these types of accounts.</p> <h2>There is a strategy to using CD accounts</h2> <p>If you decide to use CD accounts for your down payment savings, you will want to use what is known as <a href="http://www.wisebread.com/the-basics-of-cd-laddering" target="_blank">the ladder method</a>. Let's say you have $10,000. The ladder method instructs you to place $2,500 in a three-month CD, $2,500 in a six-month CD, $2,500 in a nine-month CD, and the final $2,500 in a one-year CD. Here's why: If rates go up, you can quickly take the money returned to you each quarter and place it into the higher-yield account.</p> <p>Unlike savings and money market accounts, there are penalties for early withdrawals from CDs. If you think there is a chance that you may need your funds for emergency purposes of any kind, it is best to skip CDs and just place the money into a savings or money market account that you can withdraw from at any time without penalty.</p> <h2>There are additional options for longer-term home purchase plans</h2> <p>If you have a longer-term plan for your new home purchase, there are some additional vehicles that may be worth your consideration. Bond funds can sometimes provide a return of 2 to 4 percent, which is significantly higher than savings, money market, or CD accounts. If this option interests you, there are a few points to keep in mind.</p> <p>Bond funds lose value if interest rates rise, so it is best to consult an experienced financial adviser to get a sense of what is likely to happen to interest rates in the next few years. That said, no one has a crystal ball &mdash; so while a financial adviser can make a very educated guess, they cannot guarantee what will happen with interest rates. Risk is a part of investing. Also, unlike savings, money market, and CD accounts, bonds are not insured by the FDIC and you could lose money by investing in them.</p> <h2>The bottom line on down payment savings</h2> <p>Retirement savings can afford to be invested in vehicles like stocks and bonds because we often have decades before we will use the funds. That long time horizon means retirement accounts can weather the risks of a fluctuating market. Down payment funds usually do not have the luxury of time, so investing them in stocks or bonds carries a higher risk.</p> <p>If you are considering uninsured tools such as bond funds for your down payment savings, know and understand your time horizon, risk profile, and the likely trend of the market rates. That combination of factors will determine the best place to save your down payment funds, and eventually, buy the place you will call home.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fbuying-a-house-heres-where-to-keep-your-down-payment&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FBuying%2520a%2520House-%2520Here%2527s%2520Where%2520to%2520Keep%2520Your%2520Down%2520Payment.jpg&amp;description=Buying%20a%20House%3F%20Here's%20Where%20to%20Keep%20Your%20Down%20Payment"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Buying%20a%20House-%20Here%27s%20Where%20to%20Keep%20Your%20Down%20Payment.jpg" alt="Here's Where to Keep Your Down Payment" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christa-avampato">Christa Avampato</a> of <a href="http://www.wisebread.com/buying-a-house-heres-where-to-keep-your-down-payment">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-is-private-mortgage-insurance-anyway">What Is Private Mortgage Insurance, Anyway?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-to-consider-before-buying-a-home-when-youre-single">5 Things to Consider Before Buying a Home When You&#039;re Single</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-build-equity-in-your-home">How to Build Equity in Your Home</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/make-these-5-money-moves-before-applying-for-a-mortgage">Make These 5 Money Moves Before Applying for a Mortgage</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing bond funds CDs certificate of deposits down payments ladder method liquid money market accounts saving Mon, 25 Sep 2017 09:00:05 +0000 Christa Avampato 2023544 at http://www.wisebread.com What You Need to Know About Filing an Insurance Claim After a Natural Disaster http://www.wisebread.com/what-you-need-to-know-about-filing-an-insurance-claim-after-a-natural-disaster <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-you-need-to-know-about-filing-an-insurance-claim-after-a-natural-disaster" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/flooded_street.jpg" alt="Flooded street" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The worst has happened to your home: a tornado, hurricane, or other natural disaster has damaged or destroyed it. Now it's time to rebuild. But what steps do you need to take when filing an insurance claim after a natural disaster? How can you increase the odds that your insurer will pay out as much as possible to help you rebuild not only your home, but your life? (See also: <a href="http://www.wisebread.com/8-signs-you-arent-prepared-for-an-emergency?ref=seealso" target="_blank">8 Signs You Aren't Prepared for an Emergency</a>)</p> <h2>Call right away</h2> <p>The Insurance Information Institute recommends that you call your agent or insurance company immediately after a disaster. You need to determine whether the damage to your home is covered under your policy, how much time you have until you must file a claim, and how long it will take to process the claim.</p> <p>You might want to talk about your deductible, too. If your home is destroyed by a natural disaster, the costs of rebuilding will certainly exceed your deductible. But remember that you'll have to pay your deductible amount first. If you have a deductible of $1,000, you'll have to pay that amount before your insurer starts kicking in its payments to help you rebuild your home.</p> <h2>Re-educate yourself on what your policy covers</h2> <p>Hopefully you understood the amount of coverage your homeowners insurance policy provided when you signed it. But if you've since forgotten, make sure to ask your insurance agent how much coverage you can expect to rebuild.</p> <p>Some policies provide what is known as replacement-cost coverage. This means that your insurer will pay the current value of a damaged or destroyed item even if you've owned that item for several years. Say your home's furnace is destroyed, for example. A replacement-cost policy will cover the cost of that furnace today, even if you bought it 10 years ago.</p> <p>An actual-cost policy isn't quite as good. Under such a policy, your insurer will pay for only a portion of the replacement costs of a new furnace because your 10-year-old furnace isn't worth as much as a new one.</p> <h2>Prevent more damage, within reason</h2> <p>The Insurance Information Institute also recommends that homeowners, once they set the claims process in motion, take reasonable steps to prevent further damage to their property. You might, for instance, pump water out of your home's basement. Or maybe you can cover or board up broken windows.</p> <p>Just be careful not to make more extensive permanent repairs. The temporary work you do &mdash; such as boarding up windows or doors &mdash; will be covered by your insurance company, if you provide receipts of this work. But hiring a contractor to make more extensive repairs before getting the OK from your insurer is a mistake; the odds are this work won't be covered.</p> <h2>Always keep receipts</h2> <p>If you have to move your family into temporary shelter such as a hotel, be sure to keep receipts. Your homeowners insurance policy will cover the costs of these additional living expenses if your home is destroyed. But you need to keep a record of what you're spending if you want to receive full coverage.</p> <h2>Make an inventory of damaged or destroyed items</h2> <p>Your insurance company will send an adjuster to your home to determine the damage and the costs of rebuilding. Your insurer might also send you a proof-of-loss form to fill out, either before the adjuster shows up or after.</p> <p>You'll use this form to list all of the items that were damaged or destroyed by the natural disaster. You should also gather any receipts you have for the items that were destroyed. You'll give this sheet to your insurance company's adjuster.</p> <p>It's also smart to take photos of damaged or destroyed items. These images can provide more evidence to adjusters looking to determine how much money is needed to rebuild your life.</p> <p>Do not throw away damaged or destroyed items until after the adjuster's visit. It helps for them to see the damage in person.</p> <h2>Make a list of the damage to your home's physical structure</h2> <p>List individual damages such as cracked walls, lost roof tiles, damaged electrical systems, broken windows, and demolished chimneys. Again, the more information you can provide to an adjuster about the specific damage to your home, the more compensation you are likely to receive.</p> <h2>Answer questions promptly</h2> <p>If a natural disaster hits your area, be aware that it might take insurance companies longer to process claims and sign proof-of-loss statements with homeowners. To avoid further delays, make sure to answer any questions that your insurance company has as quickly as possible.</p> <p>If your insurance company needs a document, send it as quickly as possible. Any delay on your end will only lengthen your wait for payment.</p> <p>In these times, you might not feel up to dealing with insurance process, but the longer you delay, the longer it'll be before you can start rebuilding. It must be done, so try to find a way to get it done now.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fwhat-you-need-to-know-about-filing-an-insurance-claim-after-a-natural-disaster&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FWhat%2520You%2520Need%2520to%2520Know%2520About%2520Filing%2520an%2520Insurance%2520Claim%2520After%2520a%2520Natural%2520Disaster.jpg&amp;description=What%20You%20Need%20to%20Know%20About%20Filing%20an%20Insurance%20Claim%20After%20a%20Natural%20Disaster"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/What%20You%20Need%20to%20Know%20About%20Filing%20an%20Insurance%20Claim%20After%20a%20Natural%20Disaster.jpg" alt="What You Need to Know About Filing an Insurance Claim After a Natural Disaster" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/what-you-need-to-know-about-filing-an-insurance-claim-after-a-natural-disaster">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-you-should-buy-the-rental-car-insurance">6 Reasons You Should Buy the Rental Car Insurance</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-times-you-shouldnt-file-an-insurance-claim">7 Times You Shouldn&#039;t File an Insurance Claim</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-common-medicare-myths-debunked">5 Common Medicare Myths, Debunked</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-times-to-update-your-homeowners-insurance">7 Times to Update Your Homeowners Insurance</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/20-questions-to-ask-during-an-open-house">20+ Questions to Ask During an Open House</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Insurance Real Estate and Housing claims damage deductibles hurricanes natural disasters rebuilding receipts storms tornadoes Wed, 13 Sep 2017 08:30:06 +0000 Dan Rafter 2019384 at http://www.wisebread.com 7 Times to Update Your Homeowners Insurance http://www.wisebread.com/7-times-to-update-your-homeowners-insurance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-times-to-update-your-homeowners-insurance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/beautiful_couple_relaxing_at_home_and_loving_their_pet.jpg" alt="Beautiful couple relaxing at home and loving their pet" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you took out your mortgage loan, your lender required you to sign up for a homeowners insurance policy. Chances are, you haven't thought much about this policy since.</p> <p>That might be a mistake. You should review your homeowners insurance policy whenever you make changes to both your home and your lifestyle. Doing so could save you money in the form of valuable discounts. (See also: <a href="http://www.wisebread.com/8-surprising-things-covered-by-homeowners-insurance?ref=seealso" target="_blank">8 Surprising Things Covered by Homeowner's Insurance</a>)</p> <p>And not reviewing your insurance policy when you make these changes might leave you with inadequate financial protection should a fire or other disaster damage your home or a thief steal your valuables.</p> <p>Here are the times when it's wise to review your homeowners insurance policy.</p> <h2>1. You've remodeled your home</h2> <p>If you've updated your 1970s-era kitchen, added a master-bedroom suite, or completed another large remodeling job, it's smart to call your homeowners insurance agent. That's because a major remodeling job could increase the value of your home. And this could make it more expensive to rebuild your home should disaster strike.</p> <p>You might need additional coverage after a remodel to make sure that your policy will pay for the entire rebuild of your now more-valuable residence.</p> <h2>2. You've purchased big-ticket items</h2> <p>Your homeowners insurance policy will cover the loss of valuables inside your home if a thief steals them. But if you've recently purchased big-ticket items such as pricey artwork, jewelry, furs, or electronics, it's time, again, to call your insurance agent.</p> <p>You'll want to make sure that you have enough insurance to cover the replacement value of these expensive items. If you don't update your insurance policy, you risk coming up short.</p> <h2>3. You've stopped smoking</h2> <p>Kicking the smoking habit is a smart move for your health. But it can also save you money in the form of lower homeowners insurance payments.</p> <p>Most insurers will reduce the premiums of your policy &mdash; at least by a bit &mdash; if you don't smoke. Smokers are riskier to ensure. The chance of a fire damaging or destroying your home is higher if you smoke. If you've stopped, contact your insurer to see if you're eligible for a reduced premium.</p> <h2>4. You've retired</h2> <p>Retirement might come with an insurance discount, too. The Insurance Information Institute says that some companies offer discounts of as much as 10 percent to retirees who are at least 55 years old.</p> <p>Why? Retired people usually spend more time at home. They're more likely, then, to spot the signs of a fire before it gets out of control. They're also less likely to be burglarized and have more time to spend on maintaining their homes. If you've left the working world, it's time to call your insurance agent.</p> <h2>5. You've added an alarm system</h2> <p>Adding an alarm system makes it less likely that a thief will break into your home. It can also bring you a lower homeowners insurance premium. After installing your system, call your homeowners insurance company. The Insurance Information Institute says that a new alarm system can usually save you about 5 percent in premiums each year.</p> <h2>6. You've added a swimming pool</h2> <p>Some changes can actually increase the cost of your homeowners insurance policy. One of these is adding a swimming pool. You'll be liable if someone is injured or drowns while using your swimming pool. This holds true even if the person using your pool didn't get your permission first. (See also: <a href="http://www.wisebread.com/9-surprising-things-your-homeowners-insurance-doesnt-cover?ref=seealso" target="_blank">9 Surprising Things Your Homeowners Insurance Doesn't Cover</a>)</p> <p>Insurance companies take on more risk when insuring homeowners with swimming pools, and will often increase their premiums.</p> <p>You might be tempted to keep your swimming pool a secret from your insurer. Don't. If someone is injured in your pool and sues you, your insurance company won't pay out if you added the pool without its knowledge.</p> <h2>7. You've bought a dog</h2> <p>Your homeowners insurance policy will most likely cover you if your dog bites someone on your property. But, again, you'll have to inform your insurer about your new pet to guarantee this protection. Again, your rates might rise, but keeping your new pooch a secret could cost you in the long run. (See also: <a href="http://www.wisebread.com/beware-your-insurance-may-not-cover-these-8-losses?ref=seealso" target="_blank">Beware: Your Insurance May Not Cover These 8 Losses</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-times-to-update-your-homeowners-insurance&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Times%2520to%2520Update%2520Your%2520Homeowners%2520Insurance.jpg&amp;description=7%20Times%20to%20Update%20Your%20Homeowners%20Insurance"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Times%20to%20Update%20Your%20Homeowners%20Insurance.jpg" alt="7 Times to Update Your Homeowners Insurance" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/7-times-to-update-your-homeowners-insurance">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-other-kinds-of-insurance-you-may-need-to-buy-for-your-home">7 Other Kinds of Insurance You May Need to Buy for Your Home</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-buy-a-house-with-a-pool-until-you-can-answer-these-7-questions">Don&#039;t Buy a House With a Pool Until You Can Answer These 7 Questions</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-unexpected-things-covered-by-homeowners-insurance">11 Unexpected Things Covered by Homeowners Insurance</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-let-your-bank-pick-your-homeowners-insurance">Don&#039;t Let Your Bank Pick Your Homeowner&#039;s Insurance</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-common-medicare-myths-debunked">5 Common Medicare Myths, Debunked</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Insurance Real Estate and Housing big purchases big ticket items homeowners insurance new dogs pools premiums remodeling retired security alarm Tue, 12 Sep 2017 08:30:10 +0000 Dan Rafter 2019187 at http://www.wisebread.com Make These 5 Fixes After a Home Sale Falls Through http://www.wisebread.com/make-these-5-fixes-after-a-home-sale-falls-through <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/make-these-5-fixes-after-a-home-sale-falls-through" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/housing_market_risk_0.jpg" alt="Housing market risk" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The news is exciting for anyone selling a home: After months of staging and cleaning, after debating the perfect asking price and holding dozens of showings, you've finally received an offer. After you and the buyers negotiate on the final sale price and closing date, it's time to celebrate, right?</p> <p>Maybe not. The truth is, your home sale isn't safe until the moment you sign the papers closing the deal. A home sale can fall through for several reasons. And if it does, that's a tough blow for any seller to take.</p> <p>But a busted sale doesn't mean that you'll never sell your home. Instead, it's time to consider these key steps to landing another buyer.</p> <h2>1. Fix any problems</h2> <p>The home inspection is one of the most common causes of a broken real estate sale. The inspector hired by your buyers might have discovered a problem so serious that it caused them to walk away from the deal. It could be anything from foundation problems to a severely damaged roof.</p> <p>To prevent this from happening again, fix the problems found by the inspector. When you get your next offer, you won't have to worry that they'll scare off any new buyers, too.</p> <h2>2. Adjust the sales price</h2> <p>Another common reason for a home sale to fall through is a low appraisal. The lender working with your buyers will order an appraisal of your home to make sure that it is worth what the buyers have agreed to pay. If the appraisal comes in lower than the agreed-upon sales price, your housing sale can collapse.</p> <p>If this happens to you, it's time to discuss lowering your asking price. Yes, this is painful. Even more painful, though, would be having another buyer walk away because your home appraises too low for their lender.</p> <p>If you can't afford to lower the price, you might have to take your home off the market until its value rises again.</p> <h2>3. Take a break</h2> <p>There are two times when taking your home off the market for a brief period makes sense. First, if it's approaching winter, it might make sense to take your residence off the market and re-list it after the coldest months pass. It is possible to sell your home during the colder months, but there tend to be fewer buyers in winter.</p> <p>You might also want to take a break if your home has been for sale for several months. Buyers often look at homes that have been on the market for a long time as being stale. They immediately wonder why these properties haven't sold and what problems are keeping other buyers away. By taking a home off the market and then re-listing it a month or so later, you'll have a fresh listing. Potential buyers won't look at your house with as skeptical an eye.</p> <h2>4. Redecorate, repaint</h2> <p>If you've been offered any consistent feedback about the appearance of your home, take it into consideration. Maybe you've been told that the bright colors of your kitchen or bedrooms were a turnoff, and it might be time to repaint those walls a neutral gray or beige. If buyers consistently say that your home's hardwood floors look damaged and dull, refinishing them could spur greater interest from potential purchasers. Look at your failed home sale as a chance to refresh your home, making it even more attractive to potential buyers.</p> <h2>5. Hire a new agent</h2> <p>Your agent isn't usually at fault for a busted home sale. If your buyers didn't like what they heard during the inspection, for example, that's not something you can blame on your real estate agent.</p> <p>But what if your agent pushed you to accept an offer from buyers who weren't pre-approved for a mortgage loan? What if that deal fell through because those buyers weren't able to qualify for a mortgage at all? You might wonder how many potential offers you missed out on because buyers didn't want to bother with a home that already had an offer on it.</p> <p>If you think your agent pushed you into accepting a bad offer, you might consider making a break. You'll have to read the contract you signed with your agent. Usually, the contract will say how long you and the agent must work together before you can break off the relationship. But even if that time period hasn't passed, you can tell your agent you want out. Most will agree to break the contract rather than work with a buyer who isn't happy with them. (See also: <a href="http://www.wisebread.com/how-to-fire-your-real-estate-agent?ref=seealso" target="_blank">How to Fire Your Real Estate Agent</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fmake-these-5-fixes-after-a-home-sale-falls-through&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FMake%2520These%25205%2520Fixes%2520After%2520a%2520Home%2520Sale%2520Falls%2520Through.jpg&amp;description=Make%20These%205%20Fixes%20After%20a%20Home%20Sale%20Falls%20Through"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Make%20These%205%20Fixes%20After%20a%20Home%20Sale%20Falls%20Through.jpg" alt="Make These 5 Fixes After a Home Sale Falls Through" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/make-these-5-fixes-after-a-home-sale-falls-through">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-sell-a-home-without-a-traditional-agent">How to Sell a Home Without a Traditional Agent</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/does-your-house-suck-heres-how-to-sell-it-anyway">Does Your House Suck? Here&#039;s How to Sell It Anyway</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/sell-your-house-faster-with-these-6-house-flipping-tricks">Sell Your House Faster With These 6 House Flipping Tricks</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/these-are-the-7-features-home-buyers-want-most">These Are the 7 Features Home Buyers Want Most</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-appraisal-facts-that-could-save-you-big-money">5 Appraisal Facts That Could Save You Big Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing closing failed sale home sale homebuyers listing real estate agent redecorating sale falling through selling a house Mon, 11 Sep 2017 08:30:08 +0000 Dan Rafter 2016672 at http://www.wisebread.com The Easy Way to Sublet Your Apartment http://www.wisebread.com/the-easy-way-to-sublet-your-apartment <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-easy-way-to-sublet-your-apartment" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/getting_sorted_the_new_apartment.jpg" alt="Getting sorted the new apartment" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Breaking a lease is usually an expensive proposition, but it's a situation that may be necessary for a number of reasons. A new job, moving in with a partner or spouse, or the need for more space are all scenarios where you might need to break a lease. (See also: <a href="http://www.wisebread.com/8-moves-to-make-if-you-need-to-break-your-lease?ref=seealso" target="_blank">8 Moves to Make If You Need to Break Your Lease</a>)</p> <p>If you find yourself in any of these situations, the best option may be to sublet the apartment. Someone else gets a much-needed place to live without committing to a full-term lease, you don't waste money paying a penalty to your landlord, and your landlord doesn't have to scramble to get the apartment filled before the end of your lease. Everyone wins.</p> <h2>First things first</h2> <p>Check your lease. Is subletting specifically prohibited? If so, approach your landlord. How you approach your landlord will depend upon your existing relationship with him or her. If you can just be honest and explain what you want to do, great!</p> <p>Assuming that you decide to proceed with subletting, here are a few steps to make the process as smooth as possible.</p> <h2>1. Ask friends and family members first</h2> <p>Before putting the apartment on a listing site, check with your friends and family members. Would one of them be interested in subletting from you, or do they know someone who would? A personal connection and referral almost always beats a random subletter, provided your friends and family members are responsible and respectful of the space.</p> <h2>2. Set boundaries</h2> <p>Are there certain rules that someone who sublets your apartment needs to follow? These could include no smoking, sorting the trash, collecting your mail, pet policies, or taking care of your belongings for an extended period of time. Make sure you're clear and upfront about these types of expectations so there are no gray areas down the road.</p> <h2>3. Have a proper sublease in place</h2> <p>Subletting an apartment shouldn't be done on a handshake, even if it is between friends or family members. To protect both parties, draft up a simple lease. There are a number of free templates available online. <a href="https://www.rocketlawyer.com/form/sublease-agreement.rl#/" target="_blank">Rocketlawyer</a> is a popular option for this, as is <a href="https://www.lawdepot.com/contracts/sublet-agreement/?loc=US#.WXJY_9PysY0" target="_blank">LawDepot</a>. The lease should include the monthly (or weekly) rate for the sublease, the beginning and ending dates of the lease, the name of the person (or people) who are going to be living in your apartment, and any of those boundary specifics mentioned above.</p> <h2>4. Collect a security deposit</h2> <p>It's a smart idea to collect a security deposit from the person or people who sublet your place. This can be helpful if the renters need to break their sublease or if there is damage done to the apartment. Remember, even though you're subletting, you are still legally responsible for the condition of the apartment when the lease is up, and if there are damages, your landlord may charge you for the repairs.</p> <h2>5. If subletting isn't an option, consider a swap</h2> <p>A few years ago, I wanted to try living in California for the summer. Rather than sublet my place in New York and find a sublet in California, I arranged a swap. A mother and daughter stayed in my apartment while I lived in their condo in Santa Monica. We followed all of the same steps above that I outlined for a sublease and we both got a summer experience we would never forget.</p> <p>In my situation, I wrote a post on my blog and someone found the post. It all worked out in a pretty magical way. If I tried this again, I would work through my network first to see if I had any friends, family members, or friends of friends who would be interested. If that didn't work out, I would try one of the new housing swap services that have popped up since I did my home exchange.</p> <p><a href="https://www.homeexchange.com/en/" target="_blank">HomeExchange.com</a> has more than 65,000 homes in 150 countries. Members pay $9.95 per month to list their property with the service. They facilitate over 120,000 swaps per year.</p> <p><a href="https://www.lovehomeswap.com/how-it-works" target="_blank">Love Home Swap</a> is another site with a few different swap models. You can do what they call a &quot;Classic Swap&quot; in which you go to someone else's home and they go to yours for a specific amount of time. They also have a &quot;Points Swap.&quot; Rather than having to agree on dates and location, you rent out your place whenever it's available for points instead of money. Then you can use those points to make a reservation for an available property on the site when you want to travel.</p> <p>Before you use a service to facilitate a swap, make sure the site is secure, that it verifies each user's identification, and the service has legitimate reviews on sites like Yelp. With any swap, have a legal agreement in place between you and the other party to make sure there are no surprises and that all terms are clear.</p> <p>If life leads you in a direction away from your current lease, don't resist that call. There are numerous ways to manage a lease rather than have it manage you.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fthe-easy-way-to-sublet-your-apartment&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FThe%2520Easy%2520Way%2520To%2520Sublet%2520Your%2520Apartment.jpg&amp;description=The%20Easy%20Way%20to%20Sublet%20Your%20Apartment"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/The%20Easy%20Way%20To%20Sublet%20Your%20Apartment.jpg" alt="The Easy Way to Sublet Your Apartment" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christa-avampato">Christa Avampato</a> of <a href="http://www.wisebread.com/the-easy-way-to-sublet-your-apartment">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-moves-to-make-if-you-need-to-break-your-lease">8 Moves to Make If You Need to Break Your Lease</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-11-best-websites-for-renting-your-extra-space">The 11 Best Websites for Renting Your Extra Space</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-questions-landlords-cant-ask">10 Questions Landlords Can&#039;t Ask</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-ways-to-rent-an-apartment-with-bad-credit">7 Ways to Rent An Apartment With Bad Credit</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-smart-ways-to-get-your-apartment-deposit-back">7 Smart Ways to Get Your Apartment Deposit Back</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing agreements apartments contracts house swap landlords renting sublease subletting Fri, 08 Sep 2017 08:30:10 +0000 Christa Avampato 2016671 at http://www.wisebread.com 5 Costly Pitfalls of Hosting on Airbnb http://www.wisebread.com/5-costly-pitfalls-of-hosting-on-airbnb <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-costly-pitfalls-of-hosting-on-airbnb" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/when_the_party_is_over.jpg" alt="When the party is over" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Renting out your spare room or property through Airbnb can be a great way to supplement your income. For example, New York City hosts earned a median income of $5,474 from the service from June 2015 to June 2016, according to Airbnb data. Other home-sharing services such as VRBO, HomeAway, and FlipKey all work in a similar way to connect property owners with renters through an online platform. (See also: <a href="http://www.wisebread.com/the-11-best-websites-for-renting-your-extra-space?ref=seealso" target="_blank">Best Websites for Renting Out Your Extra Space</a>)</p> <p>Unfortunately, hosting on Airbnb or one of its competitors isn't just puppies, rainbows, and profits. While there is money to be made, renting out a home, an apartment, or even a room requires a lot more skill &mdash; and patience &mdash; than many realize. There's a lot that can go wrong any time you're working with the public at large. (See also: <a href="http://www.wisebread.com/13-things-i-learned-from-renting-out-my-home-on-airbnb?ref=seealso" target="_blank">13 Things I Learned From Renting Out My Home on Airbnb</a>)</p> <p>We reached out to several Airbnb hosts to find out the biggest hassles, the most annoying downsides, and the worst things that can go awry. Their insights provide some valuable lessons on what you should really expect if you get into this business.</p> <h2>1. Rude and unruly guests</h2> <p>Renting a home or room to an Airbnb guest is a lot like running a hotel. You'll get your share of polite and courteous renters who want to enjoy themselves without making their presence a hassle. But you'll also get people who will never be happy no matter what you do.</p> <p>Airbnb host Zeona McIntyre owns properties in Boulder, Colorado and St. Louis, Missouri, and says she's experienced both the good and the bad. Some have even made her cry.</p> <p>&quot;Most guests are friendly, excited for their vacation, and really grateful that you are opening your home to them.&quot; says McIntyre. &quot;A very small group of them are entitled, rude in exchanges, and unrealistic.&quot;</p> <p>&quot;I have had guests message me at all hours of the night, expecting an immediate response and I've had guests make me drive over in a snowstorm to change a light bulb.&quot;</p> <p>If you ask any Airbnb host, you'll find that none of this is rare. In fact, dealing with an occasional bad egg is really just par for the course for any Airbnb host or landlord. Before you decide to rent a room or your home, make sure you're prepared to deal with whatever &mdash; or whoever &mdash; comes your way.</p> <h2>2. Bad reviews</h2> <p>One of the major components of any Airbnb business is customer reviews. While good reviews can help attract new renters, bad reviews can cause the opposite reaction. Either way, the review system is an integral part of the equation since it's the only way for new renters to learn what your rental experience is actually like.</p> <p>As McIntyre notes, however, the review system can be a tough pill for a new owner to swallow &mdash; especially if you're transitioning a long-term rental into an Airbnb. With a long-term rental, your tenants tour the property ahead of time and know what they're getting into. With Airbnb, this is not the case.</p> <p>&quot;People all of a sudden feel empowered to critique your design sense, mattress choice, and even cleaning products,&quot; notes McIntyre. Occasionally, even simple choices like these cause renters to leave bad reviews when it's completely unwarranted.</p> <p>&quot;Constructive criticism makes us better, but it does not need to be hurtful or exaggerated,&quot; says McIntyre. But whether you like it or not, becoming an Airbnb host means learning to deal with negative feedback. (See also: <a href="http://www.wisebread.com/this-is-how-you-rent-your-place-on-airbnb-and-succeed?ref=seealso" target="_blank">This Is How You Rent Your Place on Airbnb &mdash; And Succeed</a>)</p> <h2>3. More work than people realize</h2> <p>Too many people jump into their new Airbnb business with the false idea they're going to have it easy. List your Airbnb property for a profit, hire staff to keep it clean in between renters, and you can sit back and collect the checks, right?</p> <p>Wrong. According to Airbnb host and real estate expert James Carlson, renting a home or even a room can be a lot more work than people realize. And, Carlson should know. Not only is he a realtor, but he runs several properties of his own and teaches classes on becoming a profitable Airbnb host.</p> <p>Unless you hire out all the grunt work, you'll be doing laundry, cleaning kitchens, and making beds every few days. Not to mention being responsive to future guests and to your current guests' needs. &quot;Remember, they don't have a concierge service,&quot; says Carlson. &quot;You're it, so you need to be available.&quot;</p> <p>Depending on the number of units you have, you end up putting fires out a lot, says McIntyre.</p> <p>&quot;If a unit is not as clean as it needs to be, you need to get another cleaner there right away. If a toilet plugs up and a guest is only in town for the weekend, they need it to be functioning,&quot; she says. &quot;The key is not to lose your head.&quot;</p> <p>Most of all, be prepared for an array of inconvenient situations. It's not a matter of &quot;if&quot; they'll happen, only &quot;when.&quot;</p> <h2>4. Basic logistics</h2> <p>While unruly tenants and late-night calls can put a damper on your experience, sometimes it's the normal everyday logistics of running an Airbnb that cause the most hassle and stress.</p> <p>Landlord and Airbnb host Elizabeth Colegrove, who owns multiple properties and blogs at TheReluctantLandlord.net, says some of the hardest problems to solve are the ones that should be simple but aren't.</p> <p>&quot;One of the biggest pains in the beginning was figuring out trash,&quot; notes Colegrove. &quot;Tenants don't take the trash out to the curb and get really upset when there is trash left over from other people.&quot;</p> <p>But, since her properties are mostly single family homes, there's no dumpster and turnovers aren't always around the time of trash day. To avoid miscommunication with tenants about the trash, Colegrove added a notice to her welcome packet so tenants knew they were required to take trash out to the outside bin. She also upped the fee she paid her cleaning company so they would take the trash to the curb on trash day.</p> <p>Then, there are logistics that have to do with tenants themselves &mdash; for example, some tenants want to stay a single night but need to check out at 6 p.m. &quot;Basically they want to pay for one night but get two days, which does not work for same-day turnovers with cleaning,&quot; says Colegrove. &quot;We have had to get very strict on turnover and are even thinking about imposing a fine if not out by turnover.&quot;</p> <h2>5. Tax consequences</h2> <p>Abby Eisenkraft of Real Life Tax Advice is a tax professional who helps new Airbnb hosts prepare their taxes every year. She says that, especially the first year, Airbnb hosts are rarely prepared for the tax implications of running their business.</p> <p>Eisenkraft says she's seen a few different scenarios play out over and over. First, many Airbnb hosts never set aside money to pay taxes on their Airbnb income. Unfortunately, this can mean owing more in taxes than they planned for. &quot;They are always surprised &mdash; and many are tearful &mdash; when they see their tax bill,&quot; she says.</p> <p>Second, new Airbnb hosts tend to be confused about what they can write off, so they try to write off personal expenses that have nothing to do with their Airbnb. Eisenkraft's job is explaining what they can and can't write off, and her answer doesn't always please her clients.</p> <p>Lastly, new Airbnb hosts are typically surprised when they receive a Form 1099K in the mail showing their Airbnb income. Many falsely assumed their Airbnb business was &quot;under the radar&quot; and thus, not subject to taxes.</p> <p>Obviously, assuming any of these things can be costly. Knowing about them in advance can help you decide whether you really want to have a short-term rental on your property, with your eyes wide open to both the costs and benefits.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-costly-pitfalls-of-hosting-on-airbnb&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Costly%2520Pitfalls%2520Of%2520Hosting%2520On%2520Airbnb.jpg&amp;description=5%20Costly%20Pitfalls%20of%20Hosting%20on%20Airbnb"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Costly%20Pitfalls%20Of%20Hosting%20On%20Airbnb.jpg" alt="5 Costly Pitfalls of Hosting on Airbnb" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/holly-johnson">Holly Johnson</a> of <a href="http://www.wisebread.com/5-costly-pitfalls-of-hosting-on-airbnb">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/13-things-i-learned-from-renting-out-my-home-on-airbnb">13 Things I Learned From Renting Out My Home on Airbnb</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-easy-ways-to-make-good-money-from-airbnb">5 Easy Ways to Make Good Money From Airbnb</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-easy-ways-retirees-can-earn-extra-income">9 Easy Ways Retirees Can Earn Extra Income</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-earn-more-money-without-working-more-hours">6 Ways to Earn More Money — Without Working More Hours</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/turn-your-home-into-a-rental-in-9-easy-steps">Turn Your Home Into a Rental in 9 Easy Steps</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income Real Estate and Housing AirBnb customer service downsides guests pitfalls rentals reviews side gigs taxes Fri, 08 Sep 2017 08:30:05 +0000 Holly Johnson 2017191 at http://www.wisebread.com A Granny Pod May Be the Smartest Way to Care for an Elderly Parent http://www.wisebread.com/a-granny-pod-may-be-the-smartest-way-to-care-for-an-elderly-parent <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/a-granny-pod-may-be-the-smartest-way-to-care-for-an-elderly-parent" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-547129138.jpg" alt="the granny pod is an affordable solution to long-term care" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Many of us are feeling the pinch of caring for elderly loved ones. Between the cost of long-term care, the longer lifespan we're experiencing thanks to modern medicine and healthier lifestyles, and the desire for intergenerational families to remain intact, entrepreneurs are trying to figure out ways for people to age in place and continue to be part of their families and communities long into their golden years. (See also: <a href="http://www.wisebread.com/a-simple-guide-to-planning-for-a-loved-ones-long-term-care?ref=seealso" target="_blank">A Simple Guide to Planning For a Loved One's Long-Term Care</a>)</p> <p>One option on the table is affectionately known as a &quot;granny pod.&quot; While some have criticized it as putting Grandma into a shed in the backyard, granny pods are far from this characterization. As with most real estate, it's all about location, location, location. Think of granny pods as part of the tiny house movement, but outfitted specifically for a senior's needs. They let our elderly parents stay close to us while providing them with their own self-contained, private space. And let's be clear: I've spent the majority of my adult life living in a studio apartment in New York City that is the same size as a granny pod, so it's not an unlivable housing option. (See also: <a href="http://www.wisebread.com/5-money-strategies-for-the-sandwich-generation?ref=seealso" target="_blank">5 Money Strategies for the Sandwich Generation</a>)</p> <p>Below are three manufacturers who are designing, building, and distributing granny pods around the globe. Given the growing senior demographic and the growth of the population, we should continue to keep our eyes open for new companies in this niche and in the sustainable housing industry as a whole. (See also: <a href="http://www.wisebread.com/6-financial-steps-to-take-when-your-aging-parents-move-in?ref=seealso" target="_blank">6 Financial Steps to Take When Your Aging Parents Move In</a>)</p> <h2>MEDCottages</h2> <p>Based in Blacksburg, Virginia, <a href="http://www.medcottage.com/home.html" target="_blank">MEDCottages</a> prices their granny pods at $85,000 to $125,000. They have three different styles and some are available as kits that can be assembled as units that can be leased rather than purchased outright. It's also possible to just purchase the architectural plans from MEDCottage and hire your own contractor to build it for you. The MEDCottage products are equipped like hospital rooms with hand rails, lighted floorboards, hospital beds, large bathrooms, first aid kits, and defibrillators.</p> <h2>S-Pod</h2> <p>Manufactured by U.K. company Swift Group, the <a href="https://www.swiftmyspace.co.uk/s-pod" target="_blank">S-Pod</a> illustrates the possibilities that this kind of living structure offers. Though only available in the U.K. at the moment (keep an eye out for U.S. expansions!), it's easy to see how this option can be used for seniors who want to stay close to their families, but maintain their independence. These are currently priced at &pound;22,145, which is about $28,690.</p> <p>Unlike MEDCottages, these aren't specifically outfitted for seniors. However, just as we outfit our own homes to help aging family members, they could also be altered as needed.</p> <h2>Breezepod</h2> <p>Hopping over to New Zealand, we find <a href="http://www.breezepod.com/index.html" target="_blank">Breezepod</a>. Like the S-Pod, this product is marketed to a wide demographic, including seniors. What makes their marketing message unique is that they are designing these units from an environmental sustainability perspective. Energy efficient, easy-to-assemble with just two people, and having the ability to add features like solar panels, Breezepods don't require any timber, so they don't cause any deforestation. The polymer materials used to create them are recyclable, and their designs are both earthquake-proof and wind-resistant.</p> <p>Currently, the cost of a granny pod is the responsibility of the land owner. However, MEDCottage is laying the groundwork in the U.S. to push to have the construction of granny pods receive assistance from Medicare. Given that the cost of a granny pod is roughly the same as the cost of long-term care in a nursing facility for two years, and the need to reduce the strain on existing nursing facilities, granny pods make economical and societal sense for those seniors who can live independently with some assistance on an as-needed basis. Aging in place is coming of age thanks to this innovation. (See also: <a href="http://www.wisebread.com/6-ways-to-ease-your-parents-into-assisted-living?ref=seealso" target="_blank">6 Ways to Ease Your Parents Into Assisted Living</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fa-granny-pod-may-be-the-smartest-way-to-care-for-an-elderly-parent&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FA%2520Granny%2520Pod%2520May%2520Be%2520the%2520Smartest%2520Way%2520to%2520Care%2520for%2520an%2520Elderly%2520Parent.jpg&amp;description=A%20Granny%20Pod%20May%20Be%20the%20Smartest%20Way%20to%20Care%20for%20an%20Elderly%20Parent"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/A%20Granny%20Pod%20May%20Be%20the%20Smartest%20Way%20to%20Care%20for%20an%20Elderly%20Parent.jpg" alt="A Granny Pod May Be the Smartest Way to Care for an Elderly Parent" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christa-avampato">Christa Avampato</a> of <a href="http://www.wisebread.com/a-granny-pod-may-be-the-smartest-way-to-care-for-an-elderly-parent">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/re-nesting-tips-for-moving-back-in-with-your-parents">Re-Nesting: Tips for Moving Back in With Your Parents</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/these-are-the-7-features-home-buyers-want-most">These Are the 7 Features Home Buyers Want Most</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-best-cities-for-starting-over">The 5 Best Cities for Starting Over</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/31-essential-kitchen-tools-all-frugal-cooks-need">31 Essential Kitchen Tools All Frugal Cooks Need</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-ways-to-save-on-a-long-distance-move">10 Ways to Save on a Long-Distance Move</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Home Real Estate and Housing elderly care grandfather grandmother granny pod guest house nursing home tiny home Wed, 06 Sep 2017 08:30:11 +0000 Christa Avampato 2016058 at http://www.wisebread.com Ask the Readers: Would You Rather Rent or Own Your Home? http://www.wisebread.com/ask-the-readers-would-you-rather-rent-or-own-your-home <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/ask-the-readers-would-you-rather-rent-or-own-your-home" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/family_baby_new_house_640228626.jpg" alt="Family renting their home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p><em>Editor's Note: Congratulations to Dena, Lynda, and Wendy for winning this week's contest!</em></p> <p>Buying a home is a common goal for many people, and it can make a lot of sense&nbsp; &mdash; you're not paying rent, the property will likely increase in value, and you can fix it up any way you want. However, homeownership isn't for everyone. The mortgage is a big commitment for most people, and it's harder to leave if you need to move for a job or it turns out you don't like the area. You're also solely responsible for maintenance and repairs.</p> <p><strong>Would you rather rent or own your home?</strong> Why? What do you think is the best part to renting or to homeownership?</p> <p>Tell us if you would rather rent or own your home and we'll enter you in a drawing to win a $20 Amazon Gift Card!</p> <h2>Win 1 of 3 $20 Amazon Gift Cards</h2> <p>We're doing three giveaways &mdash; here's how you can win:</p> <ul> <li>Follow us on Twitter</li> <li>Follow our Executive Editor Janet Alvarez on Twitter</li> <li>Tweet about our giveaway for an entry.</li> <li>Visit our Facebook page for an entry.</li> </ul> <p>Use our Rafflecopter widget for your chance to win one of three Amazon Gift Cards:</p> <p><a class="rcptr" href="http://www.rafflecopter.com/rafl/display/79857dfa317/" rel="nofollow" data-raflid="79857dfa317" data-theme="classic" data-template="" id="rcwidget_3docadqk">a Rafflecopter giveaway</a> </p> <script src="https://widget-prime.rafflecopter.com/launch.js"></script></p> <h4>Giveaway Rules:</h4> <ul> <li>Contest ends Monday, September 11th at 11:59 p.m. Pacific. Winners will be announced after September 11th on the original post. Winners will also be contacted via email.<br /> &nbsp;</li> <li>This promotion is in no way sponsored, endorsed or administered, or associated with Facebook or Twitter.<br /> &nbsp;</li> <li>You must be 18 and U.S. resident to enter. Void where prohibited.</li> </ul> <p><strong>Good Luck!</strong></p> <div class="field field-type-text field-field-blog-teaser"> <div class="field-items"> <div class="field-item odd"> Tell us if you would rather rent or own your home and we&#039;ll enter you in a drawing to win a $20 Amazon Gift Card! </div> </div> </div> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-jacobs">Ashley Jacobs</a> of <a href="http://www.wisebread.com/ask-the-readers-would-you-rather-rent-or-own-your-home">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/ask-the-readers-save-money-on-rent-chance-to-win-20">Ask the Readers: Save Money on Rent? (Chance to win $20!)</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-simple-ways-to-live-rent-free">5 Simple Ways to Live Rent-Free</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-alternative-housing-options-you-can-afford">5 Alternative Housing Options You Can Afford</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/2-things-you-must-know-about-the-new-mortgage-rules">2 Things You Must Know About the New Mortgage Rules</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/avoid-these-7-things-when-living-with-roommates">Avoid These 7 Things When Living With Roommates</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Giveaways Real Estate and Housing Ask the Readers homeowner rent Tue, 05 Sep 2017 08:30:05 +0000 Ashley Jacobs 2013364 at http://www.wisebread.com Here's What's Included in a Home's Closing Costs http://www.wisebread.com/heres-whats-included-in-a-homes-closing-costs <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/heres-whats-included-in-a-homes-closing-costs" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/coins_spilling_out_of_a_glass_bottle.jpg" alt="Coins spilling out of a glass bottle" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Taking out a mortgage isn't free. You can expect to pay 2 percent to 5 percent of your home's purchase price in closing costs, the fees that everyone from lenders to title insurers charge to originate your loan. If you're buying a home for $200,000, for example, you can expect to pay between $4,000 and $10,000 in closing costs. (See also: <a href="http://www.wisebread.com/8-ways-to-reduce-mortgage-closing-costs?ref=seealso" target="_blank">8 Ways to Reduce Mortgage Closing Costs</a>)</p> <p>At least three business days before you close on your mortgage loan, your lender will send you the closing disclosure. This form lists exactly how much you'll pay each month for your mortgage, when your payments begin, and what your interest rate is.</p> <p>The closing disclosure also lists your closing costs, giving you the chance to review them before you sign any documents at the closing table.</p> <p>Here are some of the costs you might find listed on your closing disclosure.</p> <h2>Appraisal</h2> <p>Before your lender will loan you mortgage dollars, it wants to make sure that the home you are buying is worth what you are paying for it. To determine this, it will send an appraiser to your property to determine its value. You'll have to pay for the appraiser's work. You can expect this to cost about $400.</p> <h2>Escrow</h2> <p>Most lenders will require you to open an escrow account when you take out a mortgage. Under such an arrangement, you will pay extra money with each mortgage payment, with some of that money funneled into your escrow account. Your lender will then use that money to pay your property taxes and your homeowners insurance bills on your behalf when they come due.</p> <p>Typically, your lender will require that you make two to three months of your homeowners insurance and property tax payments at closing to start off your escrow account. So, if you must pay $500 every month for taxes and insurance, you'd have to prepay $1,000 to $1,500 at closing.</p> <h2>Origination fee</h2> <p>The origination fee is one of the bigger closing costs you might pay. This fee covers the costs that your lender incurs when originating your loan. You can expect this fee to be about 1 percent of your home's purchase price. For a $200,000 home, that comes out to $2,000.</p> <h2>Lender's policy title insurance</h2> <p>This insurance policy protects your lender in case the title insurance company made a mistake in its title search and you later discover that there are liens against your home. This can happen if a past owner failed to make property tax payments. This title insurance is not optional. Costs vary depending on your state, but you can expect to pay about $1,000 for this insurance.</p> <h2>Owner's title insurance policy</h2> <p>This form of title insurance protects <em>you </em>if someone comes forward with a claim that they have an ownership stake in your home. This is usually an optional fee. You can expect to pay about $600 to $1,000 if you choose to purchase this insurance. (See also: <a href="http://www.wisebread.com/yes-you-need-home-title-insurance-heres-why?ref=seealso" target="_blank">Yes, You Need Home Title Insurance &mdash; Here's Why</a>)</p> <h2>Title search</h2> <p>Before you close your loan, the title insurance company handling your closing will search the records of your new home. The goal is to make sure that no other individual or government body has an ownership claim against the property. This search usually costs from $100 to $250.</p> <h2>Underwriting fee</h2> <p>Before it approves you for a mortgage, your lender pulls your credit, verifies your income, and verifies your employment to make sure that you can afford your monthly payment. This fee covers those costs. This fee can vary widely, but expect to pay about $150.</p> <h2>Title settlement fee</h2> <p>A title insurance company will run your loan closing. The title settlement fee is what they charge for doing this. This fee can vary greatly, which is why it pays to shop around for a title insurance company. Your real estate agent might recommend a title insurance company, but you can still shop around for one on your own.</p> <h2>Credit report</h2> <p>When you apply for a loan, your lender will run your credit. Your credit reports list such important numbers as what you owe on your credit cards, whether you've made any late auto loan payments, and whether you've lost a home to foreclosure. Your lender will charge about $50 to $80 to pull your credit.</p> <h2>Flood determination fee</h2> <p>A third-party provider will determine if your home is in a flood zone. You'll have to pay this fee even if your home is located nowhere near water. It's not a costly fee, though, usually running from $10 to $20.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fheres-whats-included-in-a-homes-closing-costs&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHeres%2520Whats%2520Included%2520in%2520a%2520Homes%2520Closing%2520Costs.jpg&amp;description=Heres%20Whats%20Included%20in%20a%20Homes%20Closing%20Costs"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Heres%20Whats%20Included%20in%20a%20Homes%20Closing%20Costs.jpg" alt="Here's What's Included in a Home's Closing Costs" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/heres-whats-included-in-a-homes-closing-costs">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/yes-you-need-home-title-insurance-heres-why">Yes, You Need Home Title Insurance — Here&#039;s Why</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-mortgage-details-you-should-know-before-you-sign">5 Mortgage Details You Should Know Before You Sign</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-surprising-things-lenders-check-besides-your-credit-score">4 Surprising Things Lenders Check Besides Your Credit Score</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-money-moves-to-make-for-tomorrows-mortgage">6 Money Moves to Make for Tomorrow&#039;s Mortgage</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-build-equity-in-your-home">How to Build Equity in Your Home</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing appraisal charges closing costs credit reports escrow fees homeownership insurance lenders loans mortgages title Fri, 01 Sep 2017 08:30:05 +0000 Dan Rafter 2012628 at http://www.wisebread.com Best Money Tips: 8 Ways You Can Live Rent Free http://www.wisebread.com/best-money-tips-8-ways-you-can-live-rent-free <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-8-ways-you-can-live-rent-free" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_happy_couch_532188193.jpg" alt="Woman finding ways to live rent free" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Welcome to Wise Bread's <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found articles on ways to live rent free, tricks to building business relationships that last, and small changes that will improve your travel photographs.</p> <h2>Top 5 Articles</h2> <p><a href="https://wellkeptwallet.com/8-ways-to-live-rent-free/">8 Ways to Live Rent Free</a> &mdash; Property owners who run their business where they live &mdash; farmers, for example &mdash; often offer free rent in exchange for work. [Well Kept Wallet]</p> <p><a href="https://www.dumblittleman.com/building-business-relationships/">4 Tricks to Building Business Relationships That Last</a> &mdash; Build up your networking karma by being generous &mdash; if you can help someone out, do it! [Dumb Little Man]</p> <p><a href="https://www.popsugar.com/smart-living/Travel-Photography-Tips-43907602">6 Small Changes That Will Improve Your Travel Photography</a> &mdash; Forget selfies. Get yourself in the shot by using a tripod and a remote clicker. [PopSugar Smart Living]</p> <p><a href="https://wallethacks.com/cancel-service-5-minutes/">How to Cancel Any Service in 5 Minutes</a> &mdash; If you're on the phone to cancel a service and you don't want to spend 15 minutes declining their offers, give the rep a bulletproof reason &mdash; you're moving out of the country for a few years, for example. [Wallet Hacks]</p> <p><a href="http://www.thefrugaltoad.com/personalfinance/frugal-tips-pet-owners">Frugal Tips for Pet Owners</a> &mdash; Look for free or low-cost activities that both you and your pet can enjoy together. [The Frugal Toad]</p> <h2>Other Essential Reading</h2> <p><a href="https://adebtfreestressfreelife.com/family-meeting/">How To Rock A Family Meeting</a> &mdash; Having regular family meetings ensures that the whole household is on the same page. Set a regular day and time for the meeting so that everyone knows it's coming up. [A Mess Free Life]</p> <p><a href="https://www.mightybargainhunter.com/8-spending-habits-eclipse/">8 spending habits that eclipse your savings</a> &mdash; No matter how much you've saved, any one of these bad spending habits can wipe out your savings. [Mighty Bargain Hunter]</p> <p><a href="https://maplemoney.com/save-money-universal-orlando-resort/">20 Ways to Save Money on Your Universal Orlando Resort Vacation</a> &mdash; You never know how a vacation will go until you get there, so buy the cheapest tickets available. If everyone is feeling great and want spend more time at the park, you can always upgrade the tickets at a discount. [Maple Money]</p> <p><a href="http://www.marcandangel.com/2017/08/20/4-little-things-that-will-matter-a-lot-more-to-you-in-40-years/">4 Little Things that Will Matter a Lot More to You in 40 Years</a> &mdash; As we age, our time, genuine relationships, meaningful work, and peace of mind become more and more important to us. [Marc &amp; Angel Hack Life]</p> <p><a href="https://lifedev.net/2017/08/23/unconventional-career-can-help-find-passion/">An Unconventional Career Can Help You Find Your Passion</a> &mdash; Exploring a career that's out of your wheelhouse gives you the opportunity to develop a passion you've never considered. [LifeDev]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/amy-lu">Amy Lu</a> of <a href="http://www.wisebread.com/best-money-tips-8-ways-you-can-live-rent-free">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-simple-ways-to-live-rent-free">5 Simple Ways to Live Rent-Free</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/whats-faster-for-mortgage-payoff-100-month-extra-or-1-payment-year-extra">What&#039;s Faster for Mortgage Payoff: $100/Month Extra or 1 Payment/Year Extra?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/root-cause-of-the-financial-crisis">Root cause of the financial crisis</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/selling-your-home-17-ways-to-prepare-your-house-for-inspection-success">Selling Your Home: 17 Ways to Prepare Your House for Inspection Success</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing best money tips free rent Thu, 24 Aug 2017 08:30:07 +0000 Amy Lu 2008475 at http://www.wisebread.com 7 Other Kinds of Insurance You May Need to Buy for Your Home http://www.wisebread.com/7-other-kinds-of-insurance-you-may-need-to-buy-for-your-home <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-other-kinds-of-insurance-you-may-need-to-buy-for-your-home" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/hands_protecting_house.jpg" alt="Hands Protecting House" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Homeowners insurance provides plenty of protection for your residence. If a fire destroys your home, your insurance will help you rebuild. If a thief breaks in and steals your electronics, your policy will help you replace the stolen items.</p> <p>But a standard homeowners insurance policy doesn't cover everything that could go wrong with your home. That's why you should investigate supplemental insurance policies that cover everything from earthquake damage and flooding to sewer line failures.</p> <p>Here are some additional insurance coverages you should consider to provide the most financial protection for your home. (See also: <a href="http://www.wisebread.com/9-surprising-things-your-homeowners-insurance-doesnt-cover?ref=seealso" target="_blank">9 Surprising Things Your Homeowners Insurance Doesn't Cover</a>)</p> <h2>1. Sewer and water line protection</h2> <p>The water coming out of your kitchen faucet comes from somewhere &mdash; a water line traveling under the ground to your home, to be exact. And when you flush your toilet? That wastewater leaves your home through an underground sewer line.</p> <p>If these lines get clogged, damaged, or break, you're responsible for paying for the repairs. That can be expensive, as contractors will have to dig through the ground to get at the damaged or broken pipes. Not only will you have to pay for this work, you'll probably need to hire landscapers to fix the mess left behind in your front yard from all the digging.</p> <p>You can protect yourself by purchasing a water and sewer line protection plan from your utility company, or from a private insurer if your utility company outsources this job. These plans are usually affordable &mdash; about $5 or so a month added to your utility bill &mdash; and will often cover $5,000 for the repair work to sewer and water lines and $5,000 for the street repairs necessary to fix this problem.</p> <h2>2. Sewage backup</h2> <p>It's an unpleasant surprise: Sewage has risen through your basement's floor drains and is now covering its floors. It's not only a mess, it's unhealthy, too.</p> <p>And here's another surprise: Most homeowners insurance policies don't automatically cover sewage backups. If you want this covered, you'll have to pay for a rider &mdash; additional coverage &mdash; that specifically covers damage and cleanup costs relating to sewage backups. You can usually purchase this additional coverage for about $50 a year.</p> <h2>3. Flood insurance</h2> <p>You might think that your insurance policy will automatically cover the damages caused when heavy rains send water flooding into your basement. But this isn't the case. Standard policies don't provide coverage for flooding.</p> <p>If you want this coverage, you'll need to purchase flood insurance.</p> <p>The Insurance Information Institute says that homeowners can buy flood insurance from the National Flood Insurance Program, which is run by the Federal Emergency Management Agency, better known as FEMA. The Insurance Information Institute says that the average residential flood insurance policy starts at $112 a year. The maximum protection is $250,000 for the structure of the home and $100,000 for its contents. (See also: <a href="http://www.wisebread.com/everything-you-need-to-know-about-flood-insurance?ref=seealso" target="_blank">Everything You Need to Know About Flood Insurance</a>)</p> <h2>4. Umbrella insurance</h2> <p>You were involved in a car accident and found at fault. The driver you struck was injured and now faces a $500,000 medical bill. You likely have a personal auto insurance policy with a bodily injury limit to help offset some of that cost &mdash; say $250,000. How will you come up with the other $250,000? And what if, three months down the line, the injured driver decides to sue?</p> <p>An umbrella insurance policy is designed to protect you from the financial dangers of liability beyond what is covered in your current policies, such as your homeowners, boaters, or car insurance. Homeowners with a pool are usually advised to purchase umbrella insurance in case somebody gets hurt there. In addition to coverage for bodily injury or property damage, umbrella insurance also provides protection from certain lawsuits against you, such as slander, libel, false arrest, malicious prosecution, or mental anguish. It's also a smart investment for landlords who own rental units.</p> <p>Umbrella coverage can be purchased in million dollar increments, typically between $1 million and $5 million. The Insurance Information Institute estimates the cost for a $1 million policy to be between $100 and $300 per year. Note that umbrella coverage does not protect against damage you caused to your own property, business losses, contract violations, or legal issues stemming from an intentional criminal act.</p> <h2>5. Earthquake coverage</h2> <p>Most homeowners insurance policies don't cover damage caused to your home by earthquakes. You might not think this is a risk worth insuring, especially if you don't live in California, but the Insurance Information Institute says that 42 states are at risk of suffering earthquakes.</p> <p>The cost of this insurance varies according to where you live, but earthquake insurance usually comes with a high deductible. The Insurance Information Institute says that the standard policy offered by the California Earthquake Authority comes with a deductible of 15 percent of a home's replacement costs. This means if it would cost a homeowner in California $300,000 to replace a destroyed home, that owner would have to pay $45,000 before the insurance policy would kick in to cover the additional costs.</p> <h2>6. Home business insurance</h2> <p>Do you run a business out of your home? You might need additional coverage to protect it.</p> <p>Insurers offer home-based business insurance that will help cover damages if someone visiting your home business is injured, your business inventory is damaged because of a fire or other disaster, or you have to shut down your business temporarily if your home is damaged. A policy can also provide liability insurance if you have employees working at your home.</p> <h2>7. Extra coverage for valuables</h2> <p>If you have a large amount of jewelry, collectibles, art, or furs in your home, you might consider buying additional coverage to protect yourself if these valuables are damaged or stolen.</p> <p>The standard coverage offered by basic homeowners insurance might not provide the full replacement value for these items. To protect yourself, you can purchase a rider that will provide a coverage boost for these more expensive items.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-other-kinds-of-insurance-you-may-need-to-buy-for-your-home&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Other%2520Kinds%2520of%2520Insurance%2520You%2520May%2520Need%2520to%2520Buy%2520for%2520Your%2520Home.jpg&amp;description=7%20Other%20Kinds%20of%20Insurance%20You%20May%20Need%20to%20Buy%20for%20Your%20Home"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Other%20Kinds%20of%20Insurance%20You%20May%20Need%20to%20Buy%20for%20Your%20Home.jpg" alt="7 Other Kinds of Insurance You May Need to Buy for Your Home" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/7-other-kinds-of-insurance-you-may-need-to-buy-for-your-home">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-times-to-update-your-homeowners-insurance">7 Times to Update Your Homeowners Insurance</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-unexpected-things-covered-by-homeowners-insurance">11 Unexpected Things Covered by Homeowners Insurance</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/yes-you-need-home-title-insurance-heres-why">Yes, You Need Home Title Insurance — Here&#039;s Why</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-let-your-bank-pick-your-homeowners-insurance">Don&#039;t Let Your Bank Pick Your Homeowner&#039;s Insurance</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-money-moves-to-make-after-buying-your-first-house">6 Money Moves to Make After Buying Your First House</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Insurance Real Estate and Housing business earthquakes flood insurance homeowners insurance protection rider policies sewage sewer lines water lines Thu, 24 Aug 2017 08:30:04 +0000 Dan Rafter 2007683 at http://www.wisebread.com