By Tim McLaughlin, Senior Vice President, Weichert Financial
As we enter 2012, here are some money saving tips specifically related to the housing sector to help you manage your financial budget and capitalize on savings.
Buying a home: What size is right?
According to a survey by the National Association of Realtors, home construction firms expect U.S. houses to average 2,152 square feet in 2015, down 10% from last year. This means that if you’re buying with the goal of selling it in the future, trends suggest that oversized homes may be a declining trend in the future. So an astute buyer needs to decide what size home is right for them.
Selling a home: What price is right?
According to Joe Magdziarz, president of the Appraisal Institute, sellers and their agents should look at comparable sales data just within the past 90 days to find the right price. You don’t want to be one of the 75% of homeowners who believe their home is worth more than it is. Your knowledgeable Weichert Realtor can help you assess what price point the market will dictate to help sell your home.
Already a home owner: Shorten your loan
Refinancing your mortgage to a shorter term can save you significantly. For instance, a $250,000 mortgage, going from a 30 year at 4.25% to a 15 year at a 3.50% would save you $12,000 in interest over the life of the loan (assuming full term duration).
Don’t want to do a 15 or 30 year term loan? Terms of 10, 20, and 25 years are also available. Your educated Weichert Financial Gold Services Manager can help you custom fit the term that works best for you.
Already a home owner: Refinance, Refinance, Refinance
Even if you don’t think you have enough equity (or any equity) in your existing property, there are new product offerings coming on the market each day, so where you may have gotten a “no” in the past, you may be able to get a “yes” today or in the near future. Additionally, there are options to do a cash-in refinance, where you bring some cash to closing. If disposable cash is an issue, there are also options to build closing costs into the structure to come to the table with little or no cash in many cases.
Have questions? Need help analyzing what is best for you? Ask us….we can help!