Eliminate The Deal-Killers!

Deal-Killers!

In her year-long house hunting adventure, Brooklyn-based realtor.com writer Margaret Heidenry recently likened home shopping to dating. “I toured countless homes, and that first visit is a lot like a first date. It can be going great until you spot your personal deal breaker—like a pack of cigarettes in her purse, or white socks with sandals. Check, please!”

Deal-breaking rooms can appear anywhere in a house, and there might be more than one. Realtors can quickly list the most common offenders that make buyers cringe. Here are a few examples:

Empty rooms with echoing voices rarely entice buyers to ask for a second visit. It’s like realizing you have nothing to talk about on a date. Empty rooms make buyers question their potential uses, even if there’s a closet in the corner. The emptiness highlights flaws—like ceiling stains, windows overlooking brick walls, or peeling floor moldings. The solution? Don’t leave it empty. Stage it as something—a home office, a library, a sitting area, or a guest bedroom. Simply adding an IKEA desk, chair, area rug, lighting, and a potted plant can make a huge difference, encouraging buyers to continue their tour.

Light is essential. No one wants to walk into a dark room. Open the curtains, raise the blinds, add light fixtures—do whatever it takes to make the room feel welcoming, even if it means lightening the paint color. No one cares that it might have been your migraine sanctuary. Just do it. Adding a real plant (not a fake one) also helps, as live plants suggest there’s enough light for them to thrive.

The bathroom from hell is a major turnoff. What qualifies? Carpeted floors. Ew. Or a bathtub hidden behind a tacky shower curtain, preventing buyers from seeing its Psycho-like depths, which might reveal dirty grout, chipped porcelain, pitted fixtures, or a collection of shampoo bottles in pools of water. Realtors agree that, regardless of a house’s size or price, every woman heads straight for the bathroom to inspect the tub. They recommend either refinishing or replacing the tub. And that carpeting? Replace it with tile. Such scenes suggest future expenses to potential buyers.

Kitchens can either sell homes or drive buyers away. They are the heart of the home. Just as your homemade lasagna brings joy, buyers need a similar reaction to your kitchen. Easy fixes include clearing counters of everything, including canister sets, toasters, Nespresso machines, the Vitamix, and cookbooks, to suggest more prep space. Quick solutions with high visual impact include refacing or painting old cabinets or upgrading outdated appliances.

Other rooms and areas can also scare buyers away, such as creepy basements, cluttered entryways, purposeless formal living rooms, overstuffed closets, and Tupperware-filled cupboards.

Ask your Realtor to give you an honest assessment by pretending to be a potential buyer seeing your home for the first time. Then get to work. Be warned, though—by the time you make all these improvements, you might decide not to sell after all. It happens.

Source: TBWS

cash back refinance

Cash out and rate-and-term will save you money

How can a cash out refinance save me money?

There are 2 categories of refinance

1.“rate-and-term” 

2.“cash out”


Both will save you money

rate-and-term

The First type, rate-and-term, replaces your existing loan with one that has a better rate and/or terms. You might replace an ARM or balloon loan with a fixed-rate loan, for example. Or you may decide to lower your rate AND shorten your term. Some borrowers have been able to refinance from a 30-year loan into a 15 or 20-year loan, reducing the term, without appreciably raising their payments.

A borrower does not receive any significant amount of cash in a rate-and-term refinance; lenders generally consider that any cash proceeds above $2,000 pushes the loan into a cash out category.

There are always certain costs involved in any mortgage transaction; there will always be fees for title, escrow, underwriting and document preparation, for example. Borrowers can add these fees to their new loan to avoid having to pay them in cash. Financing these items is not considered cash out.

When you are deciding whether to do a rate-and-term refinance, you should evaluate it in two primary ways: first, how long will it take to recover the cost of doing the loan? For example, if the closing costs amount to $3,000 and the reduction in rate gives a saving of $1,500 per year in the first year.” For most people, this time frame is more than satisfactory, but you should make your own decision. The second criterion is net savings over some time, say five years, ten years or more. 

Homeowners with adjustable rate mortgages (ARMs) may decide to refinance into a fixed rate loan, even though their rate may initially be higher, they might feel more secure knowing that their rate will never change. This is more of a defensive strategy to guard against the possibility of a higher rate in the future, but it may not “save money.”


cash out

The other type of refinance, a “cash out,” the borrower receives cash of more than $2,000 at closing. This is accomplished by getting a new loan that is larger than the balance of the old one plus closing costs. Borrowers can use that money for anything. Homeowners have used cash out refinances to pay off consumer debt, like car loans, student loans, and credit cards. Using home equity to pay off credit cards can drop the payment dramatically! But paying down installment loans can create a false economy. A $30,000 car loan with an interest rate of 6% will have a payment of $500. Paying off that loan with the proceeds of a home refinance will effectively drop the payment to $150. It does NOT make sense to finance a car for 30 years. 



Contact Us. We can help you get pre-approved for a mortgage and determine how much house you can buy this next time around.  Rainbow Mortgage, Inc. is a broker so we have access to many different lenders and their loan programs which translates into more options for you!