Use your tax return to get your foot in a new home!

Is your tax return an excuse to buy some new clothes and trendy gadgets, or could it be something more?

It’s tax season, or refund season or extra spending-money season… whichever you prefer. Before you blow your tax credit, stop and consider this: your refund could be just what you need to stop paying rent, up your personal equity and get yourself into a new home. Don’t believe me? I can see your hesitation, but let me break it down for you.

If the average American receives between 2k-3k back in taxes, we have a great starting place for most home-buyers. The usual down payment for a home-buyer is between 5% & 20% of the purchase price, with a conventional loan. However, if you qualify for a FHA (first time home buyer’s program) loan, the down payment can be as low as 3.5% of the purchase price!!  Let’s take a home that costs $100,000.00 to make math simple. With an FHA loan, that means $3,500.00 down; so the question is: 3.5k toward Apple, H&M and Delta, or 3.5k toward becoming a homeowner?  I think the answer is pretty easy!

"You might be thinking that being a homeowner is still not a viable option for you because of the long-term cost of owning a home. While owning a home is a great responsibility, it often time makes more sense financially to pay a mortgage than rent" says Stephen Perrigo, Senior Loan Originator at VanDyk Mortgage.   

Let’s use the same $100,000.00 home for the sake of easy calculations. If you obtain a loan at 3.5%, which is a standard rate today for a 30 year fixed loan (if you don’t know what this means, take a look back at my blog, When Should I Refinance My Home? ), your monthly payments will total $440.91 (for the Principle & Interest part of the payment). Is that less than what you are paying in rent right now? Not only is it more than likely less, it also isn’t just being put into someone else's pocket!

"While there are other monthly expenses with buying a home (Real Estate Taxes, Home Owner’s Insurance & Mortgage Insurance) the typical costs for these other expenses monthly doesn’t exceed $500.00, making your total payment on a $100,000 home LESS than $1,000.00 a month. This is STILL likely less than your paying for rent.  And when You’re an Owner? YOU earn the appreciation on the home, as your value increases (5-6% per year) yearly! NO MORE paying Someone Else’s mortgage…  Pay Your Own!!" Says Stephen.  


If you are thinking that this all sounds great, but you would need a house that is worth more than 100k to accommodate your lifestyle, the payment on a $200K Home INCLUDING the Taxes & Insurances typically doesn’t exceed $1,500.00 Mo.  That’s equal to most apartment rents, and MUCH less than the typical Home rental, for the same price home!!
What if your tax return isn’t enough for the down payment on a house?  There is still great news. You may qualify for down payment assistance, or be eligible for a CREDIT from Your Mortgage Lender, toward your Closing Costs!!  This is something I will explain in further depth in my next blog, so stay tuned!

Another option is to plan ahead. Maybe you are interested in making a larger down payment to avoid PMI (Private Mortgage Insurance­­­, usually higher with FHA loans), you can always create a separate savings account and put this year’s tax return in it to use toward a down payment in addition to your refund next year. Always smart to have a plan for the future!

In the meantime, if you have any questions please contact one of the Real Estate Professionals at Regal Homes and we will be happy to help. We have extensive experience working with home-buyers and will be able to help you create a specialized finance plan that makes sense for you. It always helps to have a great team behind you that can help you open the door to your dreams! 

Read More: 

• http://money.cnn.com/2015/01/13/pf/taxes/taxpayer-refunds/

• http://www.bankrate.com/finance/mortgages/7-crucial-facts-about-fha-loans-1.aspx

• http://lifehacker.com/5816641/use-separate-accounts-for-simple-bucket-budgeting 

This blog brought to you in part by VanDyk Mortgages

Love Letters

February is the month of romance and while many write love letters to their significant others, buyers may want to consider writing a love letter to help woo the sellers of their dream home. While the team at Regal Homes may not be able to speak into your love life, we can share a few tips for your real estate relationship.

Let them know who you are: Often times sellers are emotionally tied to their homes, this means that there is a good chance they will want to sell to someone they like and believe will take as much care of their home as they have. When writing a letter, buyers will want to attempt to make common ground by sharing about their children, hobbies, where they are from, what they do for a living and anything else that could work in their favor. It may also be wise for buyers to share with the sellers their home buying journey. Things like why they are moving and why the house in question would be perfect can help to paint a good picture to truly understand who the buyers are. With this in mind buyers should remember not to get too personal by steering clear of politics, religion and any other hot button topics.

Only the good stuff: Remember, this is a love letter not a love novel. Buyers should try to keep it under 200 words if possible. They can briefly introduce themselves, and mostly compliment the home and explain why it is the perfect home for them. AVOID mentioning any renovations or changes buyer want to do to the property is a must; the last things a nostalgic seller will want is to drop their keys into the hands of a bulldozer fanatic.  

Vision sharing: This is where buyers can pain the picture of life in their new dream home. Phrases like “we can picture reading to our daughter by the beautiful brick fireplace” or “summers would be perfect in the backyard with the pool and barbeque” can go a lot further than you think. Sellers who have spent the majority of their lives as a family in their home will enjoy knowing that the home will continue to be used and loved for generations to come.

Everyone loves a genuine compliment: Sellers will be able to tell when buyers are faking it. Buyers should only partake in writing a love letter if they actually love the home. This letter will be an attempt to emotionally connect with sellers to set an offer apart from the other names on the other contracts. Buyers will want sellers to like them at the end of the letter, so much that they want to sell them their home. Buyers can lay the compliments on thick, if they are sincere.

PS…

We would be doing you a disservice without reminding buyers of a few key points:

1.      Grammar check, spell check, double check, triple check.

2.      Format, address, and copy edit, same as any other business correspondence.

3.      Be humble (“we would be overjoyed to raise our family in your home”).

4.      Probably the most important factor to consider is to make sure that the seller has a personal tie to the home. Just like singing love songs to the Mona Lisa will not get her to love you, writing this letter to a bank or large construction project will not help buyers appeal to the sellers.

Happy Valentine’s Day, Love the team at Regal Homes XO

Read More:

http://www.nytimes.com/2012/03/27/nyregion/securing-an-apartment-with-help-from-a-love-letter.html.

All Aboard in Tallahassee!

Tracks could be on the Tallahassee horizon! A tour is currently being conducted, get it, by Amtrak and Southern Rail Commission (SRC) to explore possibilities of reintroducing intercity railway transportation. The area specifically under observation is between New Orleans to Jacksonville, FL.

Among the passengers of this voyage are “elected officials, industry representatives, community leaders and federal stakeholders” and it is all being hosted by Amtrak President and CEO Joe Boardman. Sorry folks, but this ride on the Inspection Train is by invitation only.

We are all hoping that the Gulf Coast railway will be reinvigorated like never before! Keep your eyes out Thursday, February 18th and Friday, February 19th as the train will be making brief 10-minute stops at each of its checkpoints.  

Here is an overview of the schedule if you are interested:

Feb. 18th: 

• Louisiana: New Orleans, 8:45 a.m.
• Mississippi: Bay St. Louis, 10:20 a.m.
• Gulfport, 11:00 a.m.
• Biloxi, 11:31 a.m.
• Pascagoula, 12:16 p.m. 
• Alabama: Mobile, 1:25 p.m.
• Atmore, 2:41 p.m.

Feb. 19:

• Pensacola, 8:00 a.m.
• Crestview, 9:20 a.m.
• Chipley, 11:00 a.m.
• Tallahassee, 2:47 p.m.
• Madison, 4:24 p.m.
• Lake City, 5:35 p.m.
• Jacksonville at 7:15 p.m.

“The Southern Rail Commission is committed to working with local and federal partners, and Amtrak to make this service a reality in the near future,” said SRC Chairman Greg White. 

All in favor of the AMTRAK in Tallahassee say "ALL ABOARD"! 

More information at: 

• www.SouthernRailCommission.org.
• http://urbantallahassee.com/index.php/news-2/business-2/item/3302-amtrak-and-inspection-train-to-stop-in-tallahassee-feb-19th

Condos on The Rise

The condo lifestyle has always been greatly coveted, but the trend in South Florida has shot up like a skyscraper!

     Some of the newest condominium buildings including 1100 Millecento, Brickell House, Nine at Mary Brickell Village, 250 Wynwood, Baltus House, 25 Biscayne Bay, Bay House, Icon on the Bay, One Paraiso, Paraiso Bay tower 1, Beach House 8, Faena House, Glass One Ocean, Palau Sunset Harbour, Peloro on the Bay, 400 Sunny Isles, Mansions at Acqualina, BeachWalk, Apogee Beach, Hyde Resort & Residences condos, 1800 Las Olas, Adagio on the Bay, Aquavita Las Olas are already completely sold out!

If you are interested in the hottest projects in South Florida, contact a specialist from the Regal Homes team today! 

Beach House 8

Mansions at Acqualina

Icon on the Bay

400 Sunny Isles

Apogee Beach

Faena House

Palau Sunset Harbour

1100 Millecento

Glass One Ocean

Why every homeowner should try to quit drinking for 2016.

The team at Regal Homes is not just about offering our clients the best when it comes to buying and selling, we are also interested in the every day lives of our homeowners. 

This year, we want to encourage every homeowner to cut back on their drinking, and it might not be exactly what you are thinking…

Cutting back on the amount of water a household uses can help others by reducing energy use and can help us by saving the homeowner money.  Here are some tips how:

1. Keep an eye on things: water meters are easy to have installed and when you can see exactly, there's an incentive to waste less and save money.
2. Brush in silence: turning off the tap while you brush your teeth can save 6 liters of water per minute.
3. Stop singing in the shower: get in, get clean and get out! While showering, you are using anything between 6 and 45 liters per minute.
4. Toilet cistern displacement: no cute way to put it but these devices can be issued from your water provider and they reduce the volume of water used in each flush.
5. Load it up: don’t run washing machine or dishwasher unless full, simple enough.
6. Stop the leak: even a small drip can run through15 liters of water a day (aka 5,500 liters of water a year). That’s a lot of blue, which can cost you a lot of green! 
7. Don’t waste the rain: install a water catcher to your drainpipe, this collected water from your roof can be used to water your plants, clean your car, wash your windows, etc.
8. Water granny style: using a watering can means not using a hose that uses 1,000 liters of water an hour; sure it might take a little extra time, but gardening should be relaxing, right?
9. Plan ahead: when purchasing new appliances, look for the energy and water-efficient labels. Even the small items like showerheads and faucets can be changed and eventually pay for themselves in savings.

Also, we would like to share some of our team’s personal resolutions for 2016 with you!

“Maintain a healthy lifestyle, start a family, save more money,  purchase investment property & be more consistent with my daily devotional reading.”      - Danya Wilson

"I normally don't make resolutions, but rather improve on what I already have been blessed to do. However, this past year I feel I fell of track with progress. So this upcoming year I want to regain my focus of achieving physical health, striving towards financial freedom, and spending as much quality time with loved ones as time and opportunity will allow." - Dequan Grignon

“I really want to cut back on sugar and make a lifestyle change!” - Dena Karlin

"Strengthen my social media presence via Facebook, Twitter, Instagram and other popular forms of social media". - Ingril White

“My goal is to get back to 2009 fine… pretty much pre baby, cut back on sweets and find balance between work and personal.” - Rennai Kelly

Read More:

https://www.edenproject.com/learn/for-everyone/water-saving-tips

http://eartheasy.com/live_water_saving.htm

http://wateruseitwisely.com/100-ways-to-conserve/

https://www.google.com/search?q=buy+a+rain+catcher+for+gutter&ie=utf-8&oe=utf-8#q=buy+a+rain+catcher+for+gutter&tbm=shop

Consider this one a little pre-holiday gift!

    We know the holiday season can be far from relaxing. Too often covering your home in lights, rearranging your entire living room to display a grand pine tree and setting up inflatables on your lawn is a list of chores more than family fun. 

     As a tribute to those who make time to decorate in between all of the hustle and bustle, we have compiled some of the most interesting… Christmas decorations we have seen!

If you thought that you went all out this year, we hate to break it to you but... she has you beat! Question is... where does the tree go now?


If only lights came with auto-correct... just do like the rest of us and blame Siri!

We really don't know what happened, but it is safe to conclude his wife said something along the lines of "I don't care what it looks like, just get the tree in the house!" 

This is an entire new level of "Bah-Humbug!" 

This picture might ruin Santa's squeaky clean reputation!  

The ultimate "Christmas-Do", for those who wish to spread the joy wherever they go! 

We have to assume this was taken outside of a Miami residence... obviously due to the *cough* palm tree in the picture. 

 When the whole family wants to help decorate the tree! 

Don't let the kids see this last one...we think grandpa was getting revenge.

Merry Christmas from the Team at Regal Homes!

When should I refinance my home?

Near the top of the list of Real Estate Buzzwords, you will certainly find “Refinance”. While many people throw it around, few know that there are actually different types of refinancing and that it may not always be the best option. The Regal Homes Team is here to inform you of what is really involved with refinancing and if it is right for you! 

 

Essentially refinancing a mortgage means paying off an existing loan and replacing it with a new one.  People seek to refinance their homes for many different reasons. Here is a list of some of the most common reasons for a homeowners desire to refinance:  

• Replace an adjustable-rate mortgage with a fixed-rate loan, or vice versa. Maybe the rate went too high on the adjustable or maybe the interest rates are dropping well below an owner’s fixed rate and they don’t want to miss out on the savings! 
• Eliminate private mortgage insurance (PMI).
• Lower interest rate (most lenders would say that if the rate can be decreased by 1% them it may be worth the refinance). 
• Shorten the term of a mortgage.
• Tap a home’s equity in order to finance a large purchase or have access to cash.
• Consolidate debt.

With so many reasons to refinance, there are also different ways to refinance depending on the situation. Below are the 2 most popular: 

1. Cash-out refinancing: 
• Taking out a new mortgage for more than what is owed. Someone would do this to have access to the difference in cash, potentially to pay off existing debt or some other reason. 
• By doing this, the home owner is converting an unsecured debt into a secured debt, and the risk is that the bigger mortgage payments may be harder to keep up with and if missed, the home can be lost to foreclosure.
2. Rate-and-term refinancing: 
• Taking out a new loan for the remaining balance for a lower interest rate or a different term (number of years it will take to pay off the loan). Homeowners’ do this usually to save money if they plan on keeping the house for years to come. 
• Someone can either choose a shorter-term loan with higher monthly payments so they can reduce overall interest payments and own their homes faster or stretch out the life of the loan to reduce the payments at a lower interest rate. 

Now that you know why people refinance, doesn’t mean that it is always a good idea. So how do you know if refinancing is right for you? These are our tips: 

• Typically refinancing can cost 3%-6% of the loan’s principal. The process also requires application fees, appraisal, title search and other potential costs.  This means that if someone is close to the end of their loan term, they might not want to refinance because of the costs incurred.
• If someone is attempting to lower their interest rate or obtain a shorter loan term, they must keep in mind that it takes years to recoup that cost with the savings generated by doing so. Many lenders can help owners calculate their breakeven point (time needed for refinance to “pay for itself” in savings) or use mortgage calculators to see if the process would be worth the savings. 
• Another important thing to remember is that borrowers with a second mortgage will usually encounter added complexity with the refinancing process. With this situation, borrowers can choose between paying off the second loan or even combining the 2 loans into a larger first mortgage.  If this does not happen, the mortgage holder of the second loan has to agree to stay in the second position behind the holder of the first loan. 
• If you are trying to avoid paying PMI, a homeowner must have at least 20% equity in the property; otherwise the cost of the PMI may not be worth the refinance. However, some Fannie Mae and Freddie Mac programs and FHA loans may accept borrowers without the 20% equity. It is best to ask the lender to find out if the loan qualifies or not. 
• Also, credit plays a role in determining if a borrower can secure a good mortgage rate. As with most things, the higher the credit score the better!

Read more: 

http://www.bankrate.com/finance/mortgages/when-to-refinance-your-mortgage-1.aspx#ixzz3nL4uRCnQ

http://www.zillow.com/mortgage-calculator/refinance-calculator/

When (And When Not) To Refinance Your Mortgagehttp://www.investopedia.com/articles/pf/05/033005.asp#ixzz3nL6CfNWK