In real estate, there are many terms and expressions exchanged between experienced industry professionals. For individuals who are unfamiliar with this industry language, these words and phrases may seem entirely foreign. With this in mind, terms such as adjustable-rate and fixed-rate mortgages may also seem confusing as well. To develop a more thorough understanding of these words as industry concepts, consider the brief overview below.
In understanding the distinction between adjustable-rate and fixed-rate mortgages, you must first understand the concept of conventional loans. If you want a conventional home loan, you can either choose between the fixed-rate and the adjustable-rate mortgage.
Fixed-rate mortgages are more popular out of the two options because the interest rate remains the same throughout the duration of the loan, which provides a homeowner peace of mind because of its predictability. Since it's the same figure each month, it is easier to budget. Conversely, in an adjustable-rate mortgage, the interest rate is applied to the outstanding balance and will vary throughout the loan in intervals of five, seven or ten.
Is a fixed-rate mortgage right for you?
Pros
-Easy to understand
-Makes it easy to manage finances
-Payments remain the same regardless of the market
Cons
-They are the same for all lenders
-May cost more in interest throughout the loan
-Have to pay the same rate even if interest rates decrease
Is an adjustable-rate mortgage right for you?
Pros
-A cheaper option for borrowers who plan to move in the foreseeable future
-Ability to take advantage of decreased rates without needing to refinance
-Low-interest rates in the early stages of the loan
Cons
-More difficult to understand than fixed-rate mortgages
-Rates are unpredictable throughout the loan
Do you plan on staying in your home for several years? If so, a fixed-rate mortgage is probably the better option for you. It will provide you with a stable bill every month, and you will not have to worry about rising rates from unfavorable market conditions. Another important consideration when trying to decide between the two is the current state of interest rates. For instance, if the rates are on the higher side, Adjustable-rate mortgages can be an excellent option for a homeowner. This is because they allow borrowers to take advantage of lower interest rates in the early stages of the loan.
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Millions of homes hit the market every single day. For this reason, real estate is a highly competitive industry in which sellers must use a variety of marketing tactics to reach target audiences. With this, sellers must utilize high-quality images to showcase the best features of a property and increase the appeal of a home to a potential buyer. In doing so, high-quality real estate photography becomes a crucial tool for buyers and sellers alike on the market.
A staged home should appear to be clean with minimal clutter throughout. Over the years, a typical homeowner may accumulate clutter throughout various rooms of their home. Whether this clutter takes the form of small belongings in the bedrooms or excessive decorative pieces in the living room, it is crucial to be mindful of visible clutter when it is time to photograph the home. In many cases, homeowners are unaware of how much clutter they have until it is time to stage their home. Try to keep surfaces like countertops, tables, and desk as clear as possible. The more items that you have in a room, the less spacious it will appear in pictures.
Many people see it as an unnecessary expense. However, an experienced professional photographer will make a difference in your ability to market your home. Today, many real estate agents rely on their smartphones to take pictures of properties. If you are looking to market your home effectively, hire a professional with the tools and experience to ensure the job is done right.
Weather is a crucial factor in real estate photography. Pictures captured on a rainy or cloudy day can cause your photos to look muddled. While you cannot control the weather, you can plan around it or hire a professional photographer who knows how to handle unfavorable weather conditions.
A splash of color can make your real estate photography pop. While it is true that neutral colors will appeal to more buyers, a few pops of color can make for more enticing pictures. Consider incorporating colorful artwork, pillows, bowls of fruit, flowers, etc.
While it can be beneficial to retouch your real estate photographs, you don’t want to go overboard. Although it can be sometimes beneficial to alter the lighting, you do not want to make too many changes that would cause a scene to look unrealistic.
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Are you one of the many who is on the fence about purchasing a home? While there are risks involved in buying a home, there are also several advantages that often go unrecognized. Continue reading and discover a few significant benefits of purchasing a home in 2019.
Many people are scared away at the thought of homeownership because it requires a lot of money upfront. Many people advise making a downpayment of the home’s value. However, it is important to keep in mind that it is significantly more expensive to rent in the long run. According to Trulia, owning your home is 38% cheaper on average than renting nationally. While you still have to come up with a sizeable downpayment, you will pay far less in the long run by choosing to buy instead of rent.
Many people are unaware that purchasing a home will provide them with significant tax deductions. By owning a home, you may be able to reduce the amount you pay each year in income taxes. Property tax payments and mortgage interest may be deducted from your federal taxes.
While home prices are often unpredictable, it is important to see homeownership as an investment. While there is no guarantee, owning your home can provide you a substantial return in the long run because your property may increase in value.
Lenders want to see that you are a trustworthy borrower. When you purchase a home and make your payments on time, you demonstrate that you a low-risk and are unlikely to default on your loan. A strong history will help you with any major purchases down the line, like buying a car.
The equity in your home can be calculated by subtracting the amount of money you still owe on it from the current market value. Every time you make a mortgage payment, you reduce the amount you owe and increase your equity.
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Real estate is one of the most competitive industries today. As such, agents are always vying for more leads through various marketing campaigns and strategies. One of the best ways to attract more buying and selling prospects is through social media marketing. Keep reading and discover a few important points that real estate agents need to know about social media marketing in 2019.
Agents need to understand the significance of Instagram in the world today. It is without a doubt one of the best platforms available for sharing content. Instagram is exceptionally user-friendly and is one of the best for generating new leads. By posting pictures and short videos, realtors can showcase listings from their mobile devices in just a matter of minutes.
When most people think about social media, Facebook is one of the first things that comes to minds. While it is the oldest of the social media giants, real estate agents should not sleep on this platform. This social media platform continues to be one of the best places to share content and generate engagement. In addition to promoting property listings, real estate agents can use Facebook to post about local news and community events.
Hashtags have been used by users for years to promote social media posts. While many people argue that hashtags make a post look spammy, if used correctly, they can be used to increase discovery on social media. This is because the right hashtags can make it easier for some buyers and homeowners to find your business online.
What better way to convince potential buyers and sellers online that they should work with you than providing them with written testimonials from your previous customers? Don’t be afraid to reach out to people who you have worked with and see if they would be willing to write a review for your company page. Testimonials are great because people like having some reassurance they are working with a reputable individual.
Social media metrics can be used to see which social media strategies are generating results and which ones need to be modified. Metrics will show the levels of engagement across the agent's social media platforms. This insightful information will steer a user in the right direction with their future social media campaigns.
Buying a home is an exciting step towards your future! While there are many important considerations to make before purchasing a home, there are a few important things to keep in mind if you plan to purchase a foreclosure specifically. If you plan on purchasing a foreclosure in the near future, be mindful of the following red flags.
Many people warn against purchasing a foreclosure property in an auction setting altogether because of the number of risks involved. When you buy a foreclosure at auction, you do not have adequate time to inspect it thoroughly it for damages. With this, it can difficult to ascertain whether or not a foreclosure property is priced correctly without having a ballpark figure of how much repair costs will be in the future. Also, it is crucial to ensure there are no outstanding taxes owed on the property, as well as any other senior liens.
Have you ever heard of the term, ‘right of redemption’? If you are looking to buy a foreclosure in a state that has right of redemption, you will need to be mindful of this concept in the process. This concept means that a homeowner who has foreclosed on their property has the right to purchase back their home at the same price the buyer paid for it, plus additional interest. As a buyer, it is essential to be sure that you clearly understand the conditions. Keeping these conditions in mind will help to prevent you from wasting money as you attempt to make repairs to the property, only for the property to be taken away from a few months after you have purchased it. While the ‘right of redemption’ period varies, the maximum time frame is up to one year.
The foreclosure market is competitive, and with this, properties tend to sell quicker than most people realize. To put yourself in the best possible position to close a deal, you should be pre-qualified. Sellers prefer to work with individuals who do not need to seek out loan approvals.
We live in a digital age where convenience and accessibility are the standards of new devices, new software, and technological advancements. For that reason, many homebuyers today are interested in homes that feature smart technology, from smart thermostats to LED lights. Keep reading and discover a few of the most popular home technologies preferred by homeowners in 2019.
Fluorescent and incandescent lightbulbs, as well as dated fixtures, are becoming a thing of the past. Now, many homebuyers appreciate homes that feature LED lighting throughout the house. Not only do LED lights last longer than traditional lighting options, but they are also energy efficient and cost significantly less to operate. In addition to LED lights, many homebuyers are looking for smart lighting systems that can easily be controlled from a mobile device.
Similar to the new lighting systems, people are now looking to control the interior temperature of their home with an app on their mobile phone or tablet. With a ‘smart’ HVAC system, homeowners can save money on their heating and cooling bills with full control their home temperature from remote locations throughout the day. For example, rather than remembering to lower the temperature of the heat as you are leaving the house for work, a smart HVAC system would enable you to turn off your heat from your desk at work, as well as turn the heat back on before you return for the evening. This ability to control the temperature can have a significant impact on helping to save you money on energy costs throughout the year.
Home security surveillance is an effective way to combat criminal activity by protecting physical property. As a result, smart entry systems have significantly grown in popularity throughout the early months of 2019. With this, we can even expect more security devices to be unveiled later this year. These systems typically include doorbells with cameras that allow the homeowner to see who is on their property from their smartphone, even when they are not at home. Also, these smart security devices and applications can warn homeowners of potential hazards or intrusions, such as a door or window left open.
