Sunrise Homes & Renovations, Inc.

The Top Signs Of Readiness To Own A Home

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The Top Signs Of Readiness To Own A HomeOne of the top ways to build wealth is to own a home; however, it can be challenging to qualify for a home loan. Not everyone has the finances to maintain a house, and some people might not be ready to settle down for a prolonged amount of time. Therefore, everyone has to think carefully before deciding homeownership is the right move. What are the top signs that someone is ready to be a homeowner? 

There Is Enough Money for a Down Payment

One of the top signs that someone is ready to be a homeowner is that they have enough money for a down payment. Even though it might be possible for someone to qualify for a first-time home loan with only 3.5 percent down, this might not be the best financial move. Putting more money down could secure a lower interest rate, helping someone save thousands of dollars over the life of the loan.

The Credit Score Is High Enough

For someone to afford a home, they need to have a solid credit score. A credit score is a reflection of someone’s financial character. Most lenders have a minimum credit score someone has to achieve before they can qualify for a home loan. There are many credit monitoring systems that will provide a free credit report, so potential homeowners should frequently check the report and make sure there are no inaccuracies. Then, when the credit score is high enough, it might be time to apply for a home loan. 

Geographic Stability

Finally, potential homeowners should make sure they are going to stay in one place for the foreseeable future. There is not a lot of stability when renting. A landlord could decide to terminate the lease, or they could decide to sell the property entirely. This is not an issue with homeownership. If someone is not planning on moving in the near future, they should consider buying a house. 

Consider The Prospect Of Homeownership

These are a few of the top signs someone is ready to own a home. Anyone who is tired of throwing money away on rent should consider purchasing a home instead. This is one of the top ways to build wealth and save for retirement.

 

Make One Extra Mortgage Payment Every Year To Save Big

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Make One Extra Mortgage Payment Every Year To Save BigWhen you buy a home, you probably have a budget you will try to stick to. Many people choose a 30-year fixed mortgage, and by the time you pay off the home loan, you should own your home outright. At the same time, you might be thinking about paying off your mortgage more quickly to save money on interest. Even making one extra mortgage payment per year can provide a number of significant benefits.

You Can Build Up Equity Faster

One of the first benefits of making an extra mortgage payment every year is that you can build up equity faster. If you make an extra mortgage payment, that payment should go directly toward the principal. This means you don’t have to worry about paying down any interest with that extra mortgage payment, allowing you to build up equity in your home more quickly. 

You Save Money On Interest

If you make an extra mortgage payment, you pay down the principal more quickly. This means there is a lower remaining balance on which interest might accrue. Even making one extra mortgage payment every year can add up to tens of thousands of dollars in interest saved at the end of the loan. 

You Free Up Financial Resources Down The Road

If you make one extra mortgage payment every year, you could pay off your home loan years in advance. This means you don’t have to worry about making mortgage payments down the road, which can free up financial resources to cover other expenses. For example, you might be able to use the money you would have put toward your mortgage to put a child through college or retire early. Your savings will increase exponentially. 

Consider Making One Extra Mortgage Payment Per Year To Save Big

If you stay in your home for 30 years, there is a chance your income will go up even though your mortgage payments stay the same. Therefore, you may be able to afford to make an extra mortgage payment per year. Making only one extra mortgage payment every year can add up to big savings very quickly. 

Make One Extra Mortgage Payment Every Year To Save Big

by

Make One Extra Mortgage Payment Every Year To Save BigWhen you buy a home, you probably have a budget you will try to stick to. Many people choose a 30-year fixed mortgage, and by the time you pay off the home loan, you should own your home outright. At the same time, you might be thinking about paying off your mortgage more quickly to save money on interest. Even making one extra mortgage payment per year can provide a number of significant benefits.

You Can Build Up Equity Faster

One of the first benefits of making an extra mortgage payment every year is that you can build up equity faster. If you make an extra mortgage payment, that payment should go directly toward the principal. This means you don’t have to worry about paying down any interest with that extra mortgage payment, allowing you to build up equity in your home more quickly. 

You Save Money On Interest

If you make an extra mortgage payment, you pay down the principal more quickly. This means there is a lower remaining balance on which interest might accrue. Even making one extra mortgage payment every year can add up to tens of thousands of dollars in interest saved at the end of the loan. 

You Free Up Financial Resources Down The Road

If you make one extra mortgage payment every year, you could pay off your home loan years in advance. This means you don’t have to worry about making mortgage payments down the road, which can free up financial resources to cover other expenses. For example, you might be able to use the money you would have put toward your mortgage to put a child through college or retire early. Your savings will increase exponentially. 

Consider Making One Extra Mortgage Payment Per Year To Save Big

If you stay in your home for 30 years, there is a chance your income will go up even though your mortgage payments stay the same. Therefore, you may be able to afford to make an extra mortgage payment per year. Making only one extra mortgage payment every year can add up to big savings very quickly. 

Do You Want To Own A Second Home?

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Do You Want To Own A Second Home?

Build Wealth More Quickly

One of the first benefits of owning a second home is that you can build wealth more quickly. One of the major benefits of investing in real estate is that you can leverage the bank’s money to help you build wealth. Even though you may have only put down 20 percent, 100 percent of the property’s appreciation benefits you, as you own the home. If you own a second home, you can build wealth more quickly because you are doing this with two separate properties.

Enjoy Switching Up The Scenery

Many people like to own a second house because it allows them to switch up the scenery. If you live in the northeast, you may want to own a second home in the Southeast. If you live on the coast, you may want to purchase a second property in the mountains. That way, when you are ready for a change of weather or scenery, you can simply go to your second home. 

Generate Another Income Stream

Owning a second home allows you to generate another income stream. When you are not using the house, you can rent it out to other people. Or, you might be interested in the stability of a long-term rental. This is something that you can discuss with a real estate professional. 

Consider Owning A Second Home

In the end, there are numerous benefits that come with owning a second house. If you are looking for a way to diversify your investments, or if you are simply looking for a bit more flexibility, you should consider owning a second home as well. A professional can help you plan your finances accordingly, so you can put yourself in the best position possible to be successful. 

Can I Pay My Home Loan Off Early If I Refinance?

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Can I Pay My Home Loan Off Early If I Refinance?Many people are looking for opportunities to save money on the cost of a mortgage. If you want to save money on your home loan, you might be thinking about refinancing. During the refinance process, you will replace your current home loan with a new mortgage. Some people want to refinance their homes to free up cash for a renovation project, while other people want to pay off their homes sooner. How can you pay off your home loan early through a refinance?

Reduce Your Interest Rate 

During the refinance process, you might qualify for a lower interest rate. There are numerous reasons why you might get a lower interest rate when you refinance your mortgage. The average interest rate may have come down, your credit score may have improved, or your debt to income ratio may have gotten better. If you were due to your interest rate, more of your monthly payment will go towards the principal, shrinking your balance faster. As a result, you may pay off your mortgage more quickly. 

Reduce The Term of the Loan 

If you refinance your home, you might be able to reduce the term of the loan. The term is how many years it takes you to pay off your mortgage. For example, you may be able to reduce your 30-year mortgage to a 15-year mortgage. If you shorten the term of your loan, you may qualify for a lower interest rate, which can help you save money; however, directly shortening the term of the loan could cause your monthly payments to go up. You could work with a professional who can help you with the math. That way, you understand exactly how much you owe every month. 

Consider Paying Off Your Mortgage More Quickly

If you want to save money on interest during the life of your loan, one way to do so is to pay off your mortgage faster. You might be able to do this if you refinance your home loan. Reach out to a professional who can take a look at the balance of your home loan. You might qualify for a refinance that can help you save money on your mortgage. 

Creating A Pet-Friendly Rental Property

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Creating A Pet-Friendly Rental PropertyPeople look at pets as members of their families. They love and cherish them. At the same time, pets do not necessarily go well with rental properties. Even though their owners love them, the property owners generally do not. Pets can damage the property, stain the floors, and scratch up the furniture.

Did you know that 72% of all renters own pets?  Therefore, property owners who want to maximize their income need to create pet-friendly rentals to drive up demand. What are the biggest benefits, and what are a few ways to do exactly that? 

The Benefits Of A Pet-Friendly Rental

There are several reasons why property owners should create a pet-friendly rental. The biggest reason is that this leads to a more diversified tenant pool. Many people are looking for a property that welcomes pets. If property owners have a rental property that is pet-friendly, they will have more interest, increasing the rent they might charge.

Furthermore, pets are not the most common source of property damage. Adults and children tend to cost far more property damage on a per-month basis than pets. Therefore, property owners should not worry as much about dogs, cats, and other animals damaging their properties. 

How To Create A Pet-Friendly Rental

There are a few ways property owners can make their rental properties pet-friendly. First, it is important to think about the floors. Some floors, such as carpet, are not friendly to pets because they stain. Instead, linoleum, vinyl, and laminate floors are friendlier to pets, and they are far easier to clean. 

It might also be helpful to invest in pet doors and gates. This makes it easier to divide the property and makes it easier for pets to come in and out.

Consider Asking For A Pet Deposit

Property owners should also consider asking for a pet deposit. It is not unusual to ask for a security deposit, but owners might want to ask for an additional deposit for pets. That way, owners already have the money on-hand if they need to do some extra cleaning or make some repairs after having a pet at the property. Creating a pet-friendly rental can lead to extra income.