Sunrise Homes & Renovations, Inc.

Home Warranties: Are They Worth It?

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Home Warranties Are They Worth ItOwning a home comes with major responsibilities and also offers major questions. One of the biggest questions that people will have to answer is whether or not they want to take out a home warranty. In order to decide whether a home warranty is worth it, it is important to first understand what a home warranty is.

What Is A Home Warranty?

A home warranty is not the same thing as home insurance. First of all, homeowners insurance is something that is required to purchase a home in the first place. Home insurance is in place to protect the homeowner, and the lender, from disaster.

In contrast, a home warranty is not required but might be offered by the lender or a third party. A home warranty is designed to cover the repairs that come with routine wear and tear on various home appliances. This includes items such as the HVAC system, plumbing, and electricity (but everyone needs to read the information on any home warranty policy to see exactly what is covered.) Therefore, what might not be covered by home insurance is covered by a home warranty and vice versa. 

The Benefits Of Having A Home Warranty

One of the biggest benefits that come with a home warranty policy is peace of mind. Every home appliance is going to break down at some point as a result of routine wear and tear. When this happens, it can create a large, unexpected expense.

When this expense arises, it is helpful to have a policy that covers the cost of repairs. People might be surprised to hear that homeowner’s insurance policies are not going to cover routine repairs on appliances resulting from wear and tear. This unexpected expense can cause a lot of stress for someone’s budget. The cost of this repair can be covered by a home warranty.

The Drawbacks Of A Home Warranty

On the other hand, there are also a few drawbacks to note. The biggest drawback of a home warranty is that people might end up paying for the cost of the repair simply via the cost of a home warranty. Many of the repairs that are not covered by homeowner’s insurance can be covered out of pocket. Therefore, having a home warranty policy might be redundant.

It is important to weigh the benefits and drawbacks of a home warranty before deciding whether or not the policy is worth it. Work with your trusted real estate professional to determine the best options for your personal situation.

What’s Ahead For Mortgage Rates This Week – January 13th, 2020

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What’s Ahead For Mortgage Rates This Week – January 13th, 2020Last week’s economic reports included readings on public and private sector jobs, the national unemployment rate and weekly readings on mortgage rates and new unemployment claims.

ADP: Private-Sector Job Growth Eases in December

Private-sector jobs increased by 202,000 jobs in December and exceeded expectations. November’s original reading of 60,000 new private-sector jobs was revised to 124,000 jobs.

Three and six-month average private-sector job growth rates were 159,000 and 151,000 jobs, but these growth rates fell short of 2018’s average monthly job growth rate of 218,000 jobs added.

Analysts said that private-sector job growth has settled into a more modest but steady pattern.

Non-Farm Payrolls: Public and Private-Sector Job Growth Slower in December

The Commerce Department reported 145,000 public and private-sector jobs added in December with 145,000 new jobs reported. Analysts expected 165,000 new jobs added, which was markedly less than 256,000 new jobs added in November.

Reduction in new jobs during December was likely due to slowing in holiday hiring and winter weather. Average hourly earnings for December rose by 0.10 percent and were lower than expectations of  0.30 percent growth. Slower wage growth contributed to predictions of slowing economic growth.

The national unemployment rate was unchanged at 3.50 percent in December.

Mortgage Rates, Weekly Jobless Claims Fall

Freddie Mac reported lower mortgage rates last week; the average rate for 30-year fixed-rate mortgages fell eight basis points to 3.64 percent. Rates for 15-year fixed-rate mortgages averaged nine basis points lower at 3.07 percent.

Rates for 5/1 adjustable rate mortgages averaged 13 basis points lower at 3.30 percent. Discount points for fixed-rate mortgages averaged 0.70 percent and 0.30 percent for 5/1 adjustable-rate mortgages.

Freddie Mac predicted that rates for 30-year fixed-rate mortgages will average 3.80 percent in 2020 as compared to 4.00 percent in 2019.

Weekly jobless claims fell to 214,000 new claims; analysts expected 219,000 new claims filed. 223,000 first-time claims were filed the prior week.

What’s Ahead

This week’s scheduled economic reports include readings from the National Association of Home Builders on housing market conditions. Commerce Department readings on housing starts and inflation will also be released. The University of Michigan will post data on consumer sentiment; weekly reports on mortgage rates and new jobless claims will be posted as scheduled.

Safety First! How Often Should You Clean Your Chimney?

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Safety First! How Often Should You Clean Your ChimneyChimneys are as old as homes themselves. Yet, when it comes to chores, cleaning the chimney is one of the most neglected tasks. While people often think about yard work and housework, they often forget to clean the chimney.

When someone neglects to clean the chimney, they risk the development of mold. This can influence the efficiency of the chimney, causing debris to back up into the home. For this reason, it is essential for people to clean their chimneys on a regular schedule. 

Make Sure To Inspect The Chimney Properly

Chimneys are used seasonally. When the temperature starts to drop outside, people are going to start up the fireplace and use the chimney. Prior to lighting up the chimney for the next season, it is important to make sure they are properly inspected.

Cleaning grout and mold is an important part of making sure the chimney works properly. When someone is cozied up in front of the fireplace, it is important to note that there is an active fire happening. About 25,00 fires per year start due to an issue with the chimney. Make sure that all routine maintenance has been performed on the chimney for that year before firing it up.

Why Clean the Chimney In The First Place?

When it comes to fires, safety should always come first. This the biggest reason why chimneys need to be thoroughly cleaned. When someone cleans the chimney, they are working to prevent home fires. 

The more people use the fireplace, the more soot is going to build up in the chimney. The end result is flammable substances backing up in the chimney. This can be dangerous because it might lead to a fire when people least expect it. To prevent this from happening, be sure to clean the chimney on a regular basis.

How Often Should A Chimney Be Cleaned?

At a minimum, it is important to clean the chimney at least once per year. Annual maintenance on the chimney should be a readily accepted part of owning a home. This includes both cleaning the chimney and inspecting it for any structural flaws.

Some people may want to clean the chimney themselves. This is acceptable; however, it is also recommended to have a professional come in and take a look at the chimney. An extra set of eyes on the chimney may help prevent a fire from breaking out in the future.

If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.

The Basic Home Security Checklist Every Home Needs

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The Basic Home Security Checklist Every Home NeedsDid you realize that only around 17 percent of the homes in the United States have a security system? Leaving your residence unprotected can come back to haunt you in the future.

The longer you wait to find and fix security problems, the harder you will find it to keep your family safe. Taking the time to inspect your home is a great way to see where security problems exist. With the help of the checklist in this article, you can secure your home and keep burglars at bay.

Check Your Existing Security Alarm

If your home does have a security alarm, you need to make sure it has all of the latest features and updates. Some homeowners think that a security alarm is something they can set and forget.

One of the main things you need to make sure your alarm has is monitoring. With monitoring, you will be able to get the authorities to your home in a hurry in the event of a burglary.

The key to getting the right monitoring is working with the right security company. Before using a particular company, find out more about how they will monitor your home. Paying a bit more for high-quality monitoring will be worth it considering the safety it will add to your residence.

Check Your Windows and Doors

As you inspect your home, be sure to pay close attention to your doors and windows. Usually, these are the areas that a burglar will target when trying to break into a home. If the windows or doors are old and not working properly, it can put you and your family in a lot of danger.

This is why replacing damaged doors and windows is so important. You may also want to think about adding window alarms to your home. With these alarms in place, burglars will not stand a chance when trying to gain access to your residence. An experienced security company will have no problem installing these window alarms for an affordable price.

New Outdoor Lighting is a Good Idea

Another factor you should pay attention to when inspecting your home is the condition of the exterior lighting. If there is limited illumination on the outside of your home, you need to fix this immediately. Leaving the outside of a home dimly lit is like sending an invitation to burglars. This is why investing in high-quality landscape lighting is a good idea.

Things like motion-sensor lights can help you keep burglars away. Instead of trying to find and install these lights on your own, you need to hire professionals. They will be able to get the new lights in place in a hurry.

They can also help you choose the right places to put these lights.

A Great Investment

Instead of looking at additional home security as something you have to do, you need to view it as something you want to do. The money you invest in better home security will be worth it in the long run.

Can A Reverse Mortgage Impact Your Social Security Or Medicare Benefits?

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Can A Reverse Mortgage Impact Your Social Security Or Medicare BenefitsOne of the most common worries that people have is money. When it comes to those golden retirement years, many people worry about running out of money. At the same time, most people who reach their retirement years have a lot of equity in their home.

Therefore, many people think about drawing on the equity in their home as a source of income. A reverse mortgage will allow someone to do exactly that. On the other hand, can receiving payments from a reverse mortgage impact the benefits that someone can receive from Social Security or Medicare?

The Basics Of A Reverse Mortgage

First, people need to think about what a reverse mortgage truly means. When someone takes out a mortgage loan to purchase a home, they make regular monthly payments to the lender to repay this loan. A reverse mortgage is exactly that: a mortgage in reverse.

Instead, the bank pays the borrower. People withdraw money from the bank against the equity of the home. Then, this money doesn’t have to be repaid until someone sells the home, moves out of the house, or dies. Some of the fees that people may need to pay that are associated with a reverse mortgage include closing costs, origination fees, and insurance premiums.

Impact On Social Security And Medicare

First, people can rest easy. In general, a reverse mortgage is not going to have any impacts on someone’s Social Security benefits. The amount of income someone brings in from a reverse mortgage will not impact someone’s monthly benefits.

In addition, a reverse mortgage is not going to impact the benefits that someone receives from Medicare. On the other hand, it might impact someone’s Medicaid and SSI benefits (supplemental security income). Those who need clarification regarding this should speak with a trained and experienced attorney.

Is A Reverse Mortgage The Right Move?

Some people might be thinking about whether or not a reverse mortgage is right for them. It is important for everyone to think about their own individual financial situation because what is right for one person might not be right for the next. A reverse mortgage has the potential to provide someone with added financial security.

If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.

5 Excellent Pathways To Home Ownership For Millennials

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5 Excellent Pathways To Home Ownership For MillennialsMillennials are a huge socio-demographic group of over 83 million people. Many of them want to buy a home but face challenges that their parents did not necessarily have. Homes are more expensive. In most places, home prices rebounded to exceed the pre-2008 economic collapse values. Moreover, home prices continue to go up.

The encouraging news is that there is home financing readily available and mortgage interest rates are still reasonable. Even if it is more challenging, the greatest investment that most Americans can make is buying a home. Paying rent is only helping the landlord get rich. Homeownership is still highly desirable and a part of a wise long-term investment strategy.

Here are some tips that millennials can use to become homeowners.

Save For The Down Payment And Build An Excellent Credit History

The best rates for home loans are for those with an excellent credit history who can put down 20%. It is possible to borrow the down payment. The problem with this strategy is that the cost of the loan is higher. The mortgage rate may be higher and the lender may require private mortgage insurance (PMI). PMI pays off the loan balance to the lender if the homeowner defaults on the loan; however, it does not protect the homeowner’s equity in the home or any down payment. PMI just adds another monthly expense.

Create Non-Location Dependent Income

Home prices are somewhat dependent on the local economy and the employment available in the local area. By creating non-location dependent income through the “gig” economy. Work as a freelancer or a person who telecommutes by working from home. With this income, you will be freer to look for a home in a rural area or an area where the home prices are lower.

Take Advantage Of First-Time Homebuyer Programs

Many first-time homebuyer programs are offered by programs of the federal government through the Housing and Urban Development (HUD) and other agencies. Be sure to investigate those possibilities when considering buying a home.

Hunt For A Home In Low-Cost Areas

Use the online systems when searching for a home to compare two things, 1) the median price of homes for each area and 2) the cost of living for each area. The areas with low median prices and that have a lower cost of living are usually easier places to buy a home.

Partner With Others

A home-buying partnership is something many are using to make owning a home more affordable. Multigenerational ownership is used by many families to buy a large home together and share it. Other partnerships can be made among individuals, who are not relatives, to share ownership. Choose ownership partners very carefully and be sure to have competent legal counsel when creating a written ownership agreement.

Summary

Millennials are challenged with new obstacles when seeking to buy a home. The strongest challenge is the cost of homeownership. However, there are many clever ways to improve the chances of enjoying an affordable ownership situation. Be patient and do not give up. Work with a REALTOR® who understands the challenges and is an expert in the area where you are thinking about buying.