What’s Your Home’s Real Value?

As a society, it seems like we’ve gotten away from appreciating our homes for their emotional and sentimental worth. Instead, we focus solely on their monetary value.

An Appraiser Can Estimate A Home’s Monetary Value, But To Gain A True Concept Of Your Home’s Worth, You Must Also Take Into Consideration:

1. Pride Of Ownership. You don’t buy a pair of Prada shoes because you’re going to be able to resell them and make a profit. You buy them because they make you look good and feel good.
2. Security And Stability.  Your home provides a roof over your head that’s in your control. You can decorate it how you want. You don’t have to worry about a landlord selling the property or asking you to move out. In the “olden days” (or should I say “golden days”), we called our homes our castles because, as owners, we felt like the kings and queens of our homes. You can still feel that way! Claim your castle and crown yourself king or queen today.
3. A Safe Haven.  After a tough day at work or a day of disappointments, where’s the first place you think of going? Home! As Dorothy says, “There’s no place like home.”
4. A Place To Make Memories.  Your son’s tree house and daughter’s playhouse.  The markings on the wall that tracked your children’s growth. The porch swing where you start and end every anniversary celebration.    
5. A Neighborhood Full Of Friends.  In the event of an emergency, your neighbors are your first line of defense. They’re also the simplest, best and least expensive form of security. Additionally, they may have the exact tool you need for a project; the extra pair of hands you need to complete a project or children to become playmates with yours. Neighbors also give you that much needed in-person, up-close social network. 
6.  

Even if your home’s economic value has dropped, you continue to benefit from its emotional values of community, stability, security and success.
Thinking of buying a home? I can help you evaluate the emotional and monetary worth of homes and find a home that fits your values and lifestyle. Give your trusted mortgage professional a call today.

3 Important Credit Considerations Before You Apply For A Mortgage

Before applying for a mortgage, borrowers need to build a plan for how they are going to manage their credit both going into the mortgage process and as they navigate through it.
Lenders like to know that borrowers have a strong likelihood of repaying the loans they take out and, as such, look carefully at an applicant’s credit.

Here are three must-dos that can help an applicant turn into a home owner.

Pre-Checking Credit Reports
Before even starting the home loan application process, borrowers are well served to check their own credit reports and see what appears. If everything is correct, their credit score can help them understand what type of loans are open to them and what they might cost.

When errors come up, pre-checking gives the applicant time to have the errors corrected before applying for a loan.
When an applicant has credit issues, knowing gives him time to fix them. He can pay down balances, add new lines to his report or take other action in advance of applying.

Manage The Debt To Income Ratio
Mortgage lenders calculate a borrower’s ability to borrow based on the debt-to-income ratio. They add up the proposed mortgage payment and the other debt payments and divide them into his monthly gross income.
If he has too much debt or not enough income he won’t get the loan he wants.
To manage this, borrowers have two choices.
One is to earn more by taking on a second job. The other is to have lower payments.
Paying down credit cards can be a quick way to solve this problem.

Avoid Taking On New Debt
When an applicant takes on more debt while applying for a home loan, it can cause three problems:

1. The inquiry can drop his credit score.
2. The payments can change his DTI.
3. The lender might not feel good about a borrower taking on more debt.

Getting a mortgage can be tough. The key is to understand what lenders want to see and give it to them.
If you need help understanding credit and how to prepare for your mortgage transaction, contact Gene Neal at eneal@athccorp.com

Top 10 Indoor Houseplants For Your Air Quality

Houseplants are great for decorating. They can brighten up any room. Plus, houseplants can increase the air quality in a room. That makes you happier, healthier and reduces stress.
Speaking of stress, these plants won’t create any at all. All of the plants on this list are great at producing oxygen and require very little care.
10. Heartleaf Philodendron
A tough plant that’s a good filter for toxins like formaldehyde, Heartleaf Philodendron makes a great houseplant. The only downside is that it’s toxic to eat, so it may not be the best choice for those with kids or pets. But if you can control your appetite, the Heartleaf Philodendron is an excellent indoor houseplant for air quality.
9. Snake Plant
Also called Mother-in-Law’s Tongue, the Snake plant thrives in the bathroom. It loves the steamy conditions and can do without much light. It’s a great air filter as well.
8. Bamboo Palm
It thrives indoors and requires little maintenance. The Bamboo Palm even produces flowers and berries.
7. Red-edged Dracaena
Another great air filter, the Red-edged Dracaena is interesting because of its size. It can grow all the way to the ceiling. This beast of an oxygen-producing plant makes a great addition to the living room.
6. Chinese Evergreen
This is one of the prettier options. With interesting leaf colorings as well as berries and blooms, the Chinese Evergreen will contribute to your décor as well as your air quality.
5. Peace Lily
The Peace Lily only needs water about once a week. This is a great houseplant for air quality, and it’s easy to care for.
4. Devil’s Ivy
This air purifier looks great in a basket. Try hanging it in the garage.
3. English Ivy
English Ivy is an excellent filter plant. It’s been shown to filter out formaldehyde, which can be found in some cleaning products, and it even filters fecal matter particles (I bet you didn’t even know there were any of those in your house). English Ivy is an invasive species though. It’s fine to keep inside as a houseplant, just make sure it doesn’t end up in the yard.
2. Weeping fig
A type of Ficus, this is a great houseplant for air quality. It’s a bit bigger than the others though. It would fit best in the living room.
1. Spider Plant
The Spider plant is nearly impossible to kill. Even if you’ve been a plant murderer in the past, try this one. It will do wonders for your air quality, and I promise you won’t kill it.
Houseplants have been shown to reduce stress in the home. Combine that with higher air quality and your quality of life can be greatly improved with the help of a new green friend.
Even if you don’t have a green thumb, you can take care of these. These are great houseplants for air quality.

The Low Down On Heating And Cooling Your Home

If the temperature in your home is too hot at night, then you can’t sleep. If it’s too cold during the day, then you have to wear excessive layers.
Everyone has his or her own idea of the ideal temperature, but to keep it on that perfect number can get expensive. So, below we’ve outlined five ways you can take care of your heating and cooling system and help it run more efficiently.
1. Set It And Forget It
To maximize the effectiveness of your heating and cooling systems, you need to program your thermostat and refrain from changing it. Adjusting the thermostat makes your system work harder.
The best way to avoid tempting temperature changes is to choose a thermostat that fits your schedule, such as one with 7-day, 5-1-1, 5-2 or 1-week programming options.
2. Clean The Air Ducts
Even though your air filter catches most dust, over time debris can build up. The accumulation of dirt can restrict airflow throughout your ducts and even start blowing particles out of your registers.
Check inside the ducts and if there is any mold, dead insects, rodent feces or a thick layer of dust, then consider hiring a professional to do a deep cleaning.
3. Put Your Ceiling Fans To Work
Ceiling fans can help with heating and cooling by distributing the flow of air throughout your home. Most fans are reversible, which means they can push air down in summer to create a nice breeze and pull air up in winter to aid in circulating the heat. To change the direction of the fan’s rotation, look for a switch on its base.
4. Replace Your Air Filter
It’s standard to change your air filter every 90 days. However, you should take a peek at it every month. If it looks grimy and clogged, then go ahead and change it.
Also, consider investing in high-efficiency pleated filters. They have an electrostatic charge that grabs onto even the smallest dirt specks.
5. Consider Booster Fans
If one room in your house is always warmer or colder than the rest of your home, it might not be your HVAC system. It could be the ductwork. The twists and turns of air ducts, especially in older homes, can reduce airflow.
Booster fans are easy to install and do exactly what their name implies. They boost the flow of air to the part of your home in need of more heating or cooling.

Can I Get Cash Out From My Home Right After I’ve Purchased It?

Generally when you are purchasing a home, you are buying below the appraised value and you are making a down payment. The good news is this means you have “instant equity” in your home.
For some homeowners, this means may be considering taking cash-out from your home equity in order to pay off credit card bills, purchase a car or pay for college for one of your children. However, it is important understand, this may not be as simple as it sounds.
Cash Out Refinance, Equity Loan Or Second Mortgage
There are three basic ways to access the equity in your home which are common these include:

• Cash Out Refinance – you refinance your current mortgage and you request cash-out for the equity. For example, if your home is worth $200,000 and you have a current mortgage of $100,000 you may be able to access an additional $60,000 to $70,000 in cash depending on your lender’s requirements.

• Home Equity Loan - a home equity loan is typically a line of credit that you take out with your local bank. These loans are typically what are known as “revolving” where you can access the funds over and over again as you make payments. Home equity loan interest payments are generally not tax deductible.

• Second Mortgage – in order to qualify for a second mortgage on your home, the lender would require you to meet specific credit requirements as well as certain debt-to-income ratios. Generally, new mortgage borrowers will not qualify for a second mortgage.

In most cases, lenders will require borrowers to have had their mortgage at least one year before they are allowed the option of any type of cash-out refinance.
What’s So Special About One Year?
The one year may seem subjective but there are some important things to keep in mind. When you applied for your original mortgage, your lender based their decision on your existing credit.
Before you can take cash out, you may need to demonstrate a history of making your mortgage payments on time, as agreed.
While you may already have a substantial amount of equity in your home, lenders are taking an additional risk if you are allowed to “tap into” that equity. Before you make the decision to access the equity, talk to your lender regarding possible restrictions including prepayment clauses.

Overpay On Your Mortgage Or Add To Your Savings, This Is The Question

So you find yourself with a little bit of extra money – perhaps due to a raise, an inheritance or an unexpected windfall?
Should you put all of your money toward paying down the mortgage on your home? Or would you be better off placing your extra cash into a savings account?
Deciding whether to pay down your mortgage or add to your savings is a complex choice and it depends on a number of factors in your personal financial situation.
Here are some of the things that you will need to consider when making the decision:
How Much Are Your Savings Earning?
Take a look at the savings accounts where you are keeping your money and assess the interest that your savings are earning. Is your money earning more in savings than you would save by paying down your mortgage earlier?
Does Your Mortgage Have Overpayment Penalties?
Some mortgage lenders will charge you a fee if you try to repay your mortgage earlier than the agreed upon term. Check with your lender to find out and calculate whether the extra costs will outweigh the benefits you get from overpaying your mortgage. If they do, put your windfall in savings instead.
What are Your Other Debts?
It doesn’t make sense to be overpaying on your mortgage if you have a lot of credit card debt that is charging you an enormous amount in interest. Prioritize your high-interest debt first before you think about overpaying on your mortgage.
Do You Have An Emergency Fund?
You should always have an emergency fund in cash that will protect you from having to use expensive credit card debt if an unexpected payment comes up such as a burst pipe or a flat tire on your car or if you lose your job.
A good rule is to have the equivalent of three to six months of savings in a bank account just in case you need it. This is a first priority and only when you have this emergency fund established should you consider overpaying on your mortgage.
These are just a few of the important factors that you should consider when deciding whether to overpay the mortgage on your home or place the money in savings. For more information, contact your trusted mortgage professional.

FOMC Statement Shows Tapering Of Quantitative Easing Purchases

According to a statement provided by the Federal Open Market Committee of the Federal Reserve, the committee has approved another reduction of the Fed’s monthly asset purchases.
The adjustment will be made in February and cuts monthly purchases of mortgage backed securities from $35 billion to $30 billion and monthly purchases of Treasury securities from $40 billion to $35 billion.
FOMC began reducing its asset purchase under its quantitative easing program in January, when the monthly purchases of mortgage-backed securities and Treasury securities was reduced from $85 billion per month to $75 billion.
Citing its goals of maximum employment and price stability, the FOMC said that it has seen consistent improvement in the economy and specifically mentioned a lower, but still elevated unemployment rate. The statement also indicated that the FOMC expected labor markets to improve.
FOMC Asset Purchases: How They Impact Mortgage Rates
The Fed initiated the QE program in an effort to control rising long-term interest rates, which include mortgage rates. Yesterday, the FOMC statement said that Fed expects its purchases of longer-term assets will continue to control long-term interest rates and mortgage rates while supporting mortgage markets.
FOMC’s statement reported that it sees the risks to its economic outlook and the labor market as having become nearly balanced. The FOMC is still looking for inflation to reach its 2.00 percent goal.
Fed Monetary Policy To Remain “Highly Accommodative”
The Fed intends to maintain a highly accommodative stance on monetary policy after the QE asset purchases end and the economy is significantly stronger. The current Federal Funds Rate of between 0.00 and 0.250 percent will be maintained at least until the national unemployment rate drops below 6.50 percent.
FOMC members reaffirmed their commitment to monitoring economic indicators as part of any decision to alter current QE measures or the Federal Funds Rate.
Indicators Mentioned In The FOMC Statement Include:

• Additional indicators of labor market conditions
• Inflationary pressures and expectations
• Readings on financial developments

FOMC statements have consistently included the committee’s assertion that no arbitrary benchmark alone will be sufficient for the committee to change either QE asset purchases or the Federal Funds Rate.
FOMC stated that it will seek a “balanced approach consistent with its longer-run goals of maximum employment and inflation at two percent.”
Although fears of tapering the Fed’s monthly asset purchases may persist, it appears that each FOMC decision to reduce asset purchases under the QE program indicates economic growth.