Buying & Owning Home

You’ll often hear the term “second mortgage” come up when watching a movie or TV show when a character isn’t in a great financial standing. “They had to take out a second mortgage on their house,” a gossipy character will whisper, describing how their frenemy has fallen on bad times. But second mortgages get a bad rap—though risky, they’re often a great tool to solve financial problems or even wisely get ahead.

I purchased a newly constructed three-bedroom, three-bathroom townhome for just under $200,000 in Westminster, Colorado.

To say I was a bit stressed out while hunting for and purchasing my first home would be a gross understatement. You see, I’m a planner. I like to know what to expect in any given situation, and having to trust our real estate agent to guide us through the whole process—without having a road map detailing each step of that process—made me a nervous wreck. There seemed to be so many moving parts that it made my head spin.

Essentially we decided to buy the home, rent out the parts we weren't using, and cover our mortgage with the income. But then it got hard.

For many, the path to becoming a first-time homeowner is an uphill climb. Student debt, low wages, high housing prices, and massive down payments can mean putting home-owning dreams on the back burner. But a new report provides a flicker of light for wannabe home buyers: It’s getting pretty easy to land a mortgage again, regardless of these hurdles.

Anyone who has gone through the stress of house hunting knows that it can be a challenge of biblical proportions. Though no home buying experience is the same, Maureen Burns with @Properties in Chicago, Illinois, says the right preparation and mindset can help you find the best property with relatively little stress. From not getting hung up on easily-fixed cosmetic features to researching your desired neighborhoods ahead of time, this list of rules is a good guide for house hunters everywhere.

After watching our parents retire and still have to make mortgage payments on a fixed income, my husband and I decided we would do whatever to prevent that for ourselves. So we approached our mortgages with aggressive and out-of-the-box steps that aren’t for everyone, but definitely worked for us.

I worked two jobs for four long years, coming home at the end of the day to the house I grew up in, saving up some cash for a down payment on a house of my own.

From location and lot size to curb appeal and area schools, most people know the most common factors that can affect a home’s property value. However, the list doesn’t quite end there. “Surprisingly, there are many out-of-the-box factors which may not be quite obvious that affect property value either positively or negatively,” says Marlene De Cespedes, director of luxury sales at Douglas Elliman in Miami, Florida.

You’ve heard this piece of home-buying advice time and time again: When it comes to buying property, you should work with a qualified real estate agent. While it may be tempting to go it alone, real estate agents do this for a living and their professional expertise can make a difference. However, you’ve probably also heard horror stories about subpar real estate agents who made the home buying process more of a nightmare than a dream.

Looking to purchase your first home? Find out what this popular real estate term really means, and how to pick the best one for your needs.

Open houses can be exciting, no matter whether you’re actively house-hunting or just a nosy Nellie. These events offer a pressure-free (okay, mostly pressure-free) way to scout out any homes on your radar—and maybe even find your dream space. But staying on your best behavior at an open house is paramount: After all, the seller’s agent is right there. Act like a loon and they’ll pass on the memo to their client, who may decide not to accept your offer.

We spoke with real estate and home financing experts to get the full picture.

The open house circuit can feel stressful and intimidating. You’re filing in and out of strangers’ homes and apartments, hoping this one might be the one. But how can you know? Luckily, those agents—you know, the ones manning the cookie tables, holding piles of business cards—can answer all your burning questions. You just need to know which ones to ask. Here, the top 10 questions to ask at an open house to help determine whether or not the space is right for you.

Good news first: It’s actually possible to purchase an apartment in Manhattan for under $300,000 or so. (Yes, an actual apartment—not a closet! And yes, purchase to own, not rent!) Every so often, a Housing Development Fund Corporation (HDFC) co-op unit hits the market, providing a rare, affordable option for prospective homebuyers. But the discouraging news?

Who had it worse when buying homes: the Boomers or Millennials? It might be a topic that makes Thanksgiving dinner tenuous, but now the argument has an answer. Well, sort of. According to a new report, home-ownership is technically cheaper than it was in the 1980s, but today it’s currently harder than ever to afford a home.

On Wednesday, the Federal Reserve raised its benchmark interest rate for the seventh time in two years, signaling continued economic growth and a low unemployment rate. While that might just sound like financial mumbo-jumbo, it could have serious effects on what you pay for your home in the near-future. The benchmark interest, or prime, rate is basically the minimum rate that non-Treasury lenders (a.k.a.

Buying a house is stressful enough, but when you add in the unfamiliar lingo and mounds of paperwork, it can be overwhelming.

It’s your move-in day and, while it may be more fun to plan all the vintage items you’re going to put in your living room, the reality is that there are certain parts of your new place that need to be cleaned—stat. Even if the past owner hired a professional to deep-clean after they moved, there are some sneaky, behind-the-scenes spaces that should be checked out.

As a savvy seller, you’ve spruced up the front yard to increase your home’s value and have been keeping an eye on how much homes are selling for in your neighborhood. You’ve done your research—so much, in fact, that you know exactly which day of the week is best to list your property. So, should you go full-on real estate star and try to sell your home on your own, too?

Want to build your dream home from scratch? Don’t want to wait forever and drain your savings? A prefabricated—or prefab—home is the way to go. They’re built in a factory and transported section-by-section to be assembled almost wherever you please—almost like the IKEA furniture of homes. There are many pro and cons to buying prefab homes, and many ways to go about it.

Property taxes, homeowners insurance, interest, HOA fees—when it comes to your monthly mortgage payment, your loan’s principal doesn’t lack company. Still, few of these additional costs and expenses draw as much ire from a homeowner than private mortgage insurance (PMI.) If you’re begrudgingly shelling out extra cash for a PMI premium, then private mortgage insurance needs no introduction.

While you’re in the process of house hunting, all you want to do is find a keeper, get the keys and settle into your new life. But it pays to think long-term when buying a home because you’re probably going to be selling it sometime in the future, and you want to get a good return on your investment. So, keeping certain factors in mind when purchasing a home is key to ensure that it has good resale value. Here, six things you should think about, according to professionals.

You hunted until your feet were sore, found your dream home and made an offer that was accepted. Time to exhale, right? Not quite. “The first rule of real estate: All contracts must be in writing to be binding,” says David Rosen, a real estate agent with Douglas Elliman in New York City. That means until you actually have a signed contract, your accepted offer is just a good faith agreement. But it all works out, right?

When my wife and I were looking to get pre-approved for a mortgage, we started at the most obvious spot: Bank of America, the longtime home of our checking and savings accounts. Turns out, that may not have been a smart idea. For starters, we were surprised to discover that their rates and terms were pretty unattractive, especially for first-time buyers like us. We were already scrounging for cash, and the bank was pretty inflexible about the down payment amount.

I always considered myself to be non-materialistic, a simple girl who isn’t wrapped up in the things she possesses. After all, it’s only stuff, right? But then I downsized.

If you’re a homeowner, the threat of a big, unexpected expense might be keeping you up at night. But if that’s what you’re losing sleep over, you’re not alone. In fact, a recent study from NerdWallet found that the main anxiety shared among homeowners was financing (65%). The simple secret to maintaining a great-looking house without having it drain your bank account? Never falling behind in upkeep.

Inspections, closing costs, and loans—oh my! Buying a home is one of the most stressful experiences a couple can share. With so many variables to consider (finances, location, simple matters of taste, etc.), it may feel like every day could bring a new opportunity to argue—but it doesn’t have to be that way. Besides, the home-buying process offers enough trying hurdles as is—there’s no need to conjure your own.

More than half (57%) of new homeowners believe they could remodel an entire room without any help from a professional. Millennials are even more confident in their DIY abilities, with 64% ready to tackle a remodeling project on their own. That’s according to a Home Depot survey of 1,000 new homeowners, age 25 and up, who had purchased a home in the past year.

Sure, that old Victorian home seems great now. It has original floorboards and the crown molding is so charming. But once you purchase, every creaky step will send a shiver up your spine: One wrong move and the whole place could crumble down faster than you can say “poor house.” It’s a scary thought, but you’re not alone. In fact, threat of costly repairs is the number one stress for homeowners.

Whether you’re looking to downsize or are just engaging in a little couple’s therapy courtesy of online real estate listings, here’s a list you’ll love to browse. Redfin released their findings on the top ten tiny houses currently for sale in the U.S., and you can take a peek inside each one.

Nearly 3 of 4 house hunters call it "essential."

In order to combat its growing affordable housing issue the city of Tempe, Arizona is slated to break ground on a community of relatively low-priced tiny homes on city-owned land next spring. The desert city just outside Phoenix has seen an average rent increase of $200 per month since 2015. The community of 12 “micro-estates,” as the developers are calling them, will sit on approximately an acre of land with each home coming in at 600 square feet.

Like Honeycomb cereal, America’s big, yeah yeah yeah. (It’s not small, no no no.) But a new survey shows that maybe we’re finally ready to embrace smaller living — or at least the idea of it. More than half of Americans (53%) polled by the National Association of Home Builders said they were at least willing to consider living in a tiny home, defined as less than 600 square feet.

There’s a reason for that tired saying about real estate: It’s all about “location, location, location.” The quality of a neighborhood was a top concern for 60% of recent homebuyers, according to a 2017 report by the National Association of Realtors. And real estate website Trulia found that 85% of its users who plan to buy a home in the next year and a half said that the neighborhood was equally or more important than the house itself.

If you have any extra space in your home — a spare bedroom, guest house, a finished garage — chances are you’ve toyed with the idea of listing it on Airbnb. Pros: extra money for bills or savings, a fun way to meet cool people, and not a lot of real work. Cons: the potential for weirdos in your space, property damage, and near-constant mental labor in the form of requests and bookings.

If you’ve been keeping an eye on the real estate market recently, you’ve probably heard a few rumours about rising interest rates flying around. We’re sad to say that what you’ve been hearing is true — but that doesn’t mean you should give up hope on your dreams of becoming a homeowner. Keep reading to learn more about what’s happening with interest rates today — and what you can do to stay competitive.

For the first time, Airbnb hosts can now count their home-sharing earnings as additional income when refinancing their mortgage at three national lenders: Citizens Bank, Better Mortgage, and Quicken Loans (the company behind that Rocket Mortgage app you see each Super Bowl). That may sound trivial, but like Ron Burgundy, it’s kind of a big deal. Refinancing a mortgage isn’t exactly easy; it’s almost as tedious as taking one out in the first place.

You’ve been setting aside money for a down payment for a few years and you’ve met your goal. Your online browsing has turned to semi-regular weekend open house hunting, and now you’re thinking about getting an agent of your own. Is it time? Are you really ready to buy a house? One of the biggest daily life differences between renting and owning is that no one is responsible for maintaining a home except for the home owners.

The average interest rate on a 30-year fixed-rate mortgage has surged past 4.28% this week to its highest point in years, according to CNBC. That’s bad news for home buyers, because even a small rate increase can be enough to push an already difficult-to-afford house completely out of reach. After starting the year around 4.0%, average rates have been steadily creeping higher, with some lenders quoting best rates of 4.5% this week.

If you’ve ever written a monthly check to Sallie Mae, the findings of a new study on student loan debt and millennial homeownership shouldn’t surprise you: College graduates with loan debt have a harder time saving up for a down payment than those who graduate debt-free. That’s according to a study released Thursday by rental website Apartment List.

Like many of you, I suspect, I love watching HGTV house hunting shows. It’s fun to guess how a wedding calligrapher and Frisbee golf instructor can possibly buy a $1.5 million house. When my husband and I decided to buy a house, we did not have a $1.5 million budget. But what we did have was a sizeable down payment.

A shutdown of the federal government — which will occur if Congress can’t approve at least a temporary funding bill today, an increasingly likely scenario — could throw a monkey wrench into many corners of our economy. And if you’re getting ready to close on a house, look out, because one of those wrenches might be headed your way.

If buying your first home is among your New Year’s resolutions for 2018, you might be viewing the current real estate landscape with equal parts hopeful wonder and anxious dread. As a first-time buyer, you can expect plenty of company at open houses and a lot of headwinds in your search. Experts predict 2018 will be another seller’s market, with demand far outpacing the available inventory of homes for sale. But that doesn’t mean you have to sit on the sidelines.

Buying or selling a home is a daunting task and a massive learning experience.

It’s that time of year when we reflect on the last 12 months, look dreamily out the coffee shop window, and think… “To hell with you, 2017! You were the [bleeping] worst. Let’s hope 2018 isn’t such a slimy armpit stain of a year.” Ahem, er… right. It was a tough year for homebuyers, and lots of other people, too. Is there any relief in store? It looks that way.

Las Vegas will be the hottest housing market in America next year, according to Realtor.com — and not just because the average high temperature is 100 degrees or more from June through August. Realtor.com analyzed data on home sales, prices, and new construction, as well as local economic factors, population trends, unemployment, and median incomes to determine its top 10 housing markets for 2018. Not a single metro area in the Northeast, Great Lakes, or Pacific Northwest made the cut.

Millennials get a bad rap. We killed chain restaurants, doorbells and, if you take this recent study at face value, we’re killing neighborly love. But not according to me. The team at Safe Home surveyed 1,000 Americans to discover how close we are to the people that live near us.

A 20 percent down payment is the gold standard held up by every real estate resource ever. With less than 20 percent down, you’re on the line to pay PMI — private mortgage insurance — a fee that’s tacked on to your mortgage every month for no other reason than to protect the bank (not you) if you ever default on your loan.

‘Tis the season to be house hunting. Yep, you heard us right; if you’re looking to score a deal on your dream home, the end of the year is a great time to do it. Now, you may be asking yourself, “Who would want to trek to open houses in 20-degree weather when you could be curled up by the fireplace at home?” And the answer would be: People who really, really want to get a good deal.

If you hope to own a home some day, you may be under the impression that you need to save up for a 20 percent down payment—but the truth is, that’s just a myth. According to data from Better, an online mortgage platform, only 17 percent of homebuyers actually put between 15 and 25 percent down — and more than a quarter (27 percent) of them put down between 5 and 10 percent.

Buying a home can be crazy expensive, and for most first-time buyers, the hardest part is saving up a sizable down payment. You’ve no doubt heard that the traditional down payment should be 20% of the purchase price — any less, and you’ll likely have to pay private mortgage insurance (PMI) or get stuck with a higher long-term interest rate. And who’s got 20% of, say, $300,000 just kicking around in their bank account? However, that 20% figure isn’t set in stone.

In some expensive cities, it can feel like every dollar you earn goes straight toward housing. It turns out, it may not be your imagination. A new data visualization by HowMuch.net shows how many hours the average household in 98 U.S. cities would need to work each month just to afford the median mortgage payment in their city.

A new study by Apartment List shows a stark and concerning racial divide in the homeownership rate.

In 2008, the U.S. housing market was already cratering as the Great Recession took hold. To try and stop the bleeding, Congress passed a series of first-time homebuyer tax credits, each more generous than the last. First came a $7,500 tax rebate, to be repaid over 15 years with no interest. By early 2009, it had grown to $8,000, and required no payback whatsoever. And for most of 2010, even some repeat home buyers were eligible for a tax credit worth up to $6,500.

Picture it: the house you’re looking at comes with three bedrooms, two baths, and a couple of ghosts. Is that a deal breaker? For some, not necessarily, according to a new survey released today by Realtor.com. The company surveyed more than 1,000 online respondents and found that a third of them are open to living in a haunted house, with 25 percent in the maybe camp, and the remaining 42 percent saying definitely not.

If you’ve been living in a major city the past few years, you’ve probably seen your rent go up — and up, and up — and thought about buying a home to escape the rent hikes. Problem is, you’ve likely watched helplessly as the prices of nearby condos and houses climbed out of your reach even faster. If you’re feeling priced out in the city you call home, should you consider moving to make your dream of homeownership come true?

Unless you have a fairy godmother or a cool half million sitting around, you’re probably going to need a mortgage if you want to buy a home. Here’s how to qualify for and choose a mortgage, and what to expect throughout the process. Let’s face it: You can go to as many open houses as you want, but you’re not going to be able to buy one without a mortgage. So get the ball rolling early and get pre-approved before you even start house hunting.

You know want to buy a home — you’re just not sure where to begin. And no wonder: Buying your first home can be a long, intimidating process, full of gross stuff like math, legal documents, and cutthroat competition. But have no fear: First-time buyers just like you do it all the time, and we’ll walk you through the process. First, you’ve got to make sure you’re emotionally and financially ready to buy a home.

If you’ve had enough of your roommate eating your leftover take-out, your absentee landlord hiking the rent year after year even though the heat barely works, or your mom asking what time you — a full-grown adult the last time you checked — will be home, you might be dreaming about buying your own place, and doing it sooner rather than later. But how do you know if you’re ready to buy a home, and whether it’s a good idea? There are various rent vs.

Open houses are kind of fun, aren’t they? There’s something interesting about walking through a home and trying to picture yourself living there. However, when you’re serious about getting into the real estate market, it’s time to take this experience to the next level. Here are our tips for buyers on getting the most out of open houses. Keep these in mind the next time you’re in the mood to take a tour and you’ll be an open house pro before you know it.

For most of us, buying a first home is a pretty big deal. We’re all indoctrinated from a young age with the more romantic aspects of becoming homeowners, making it hard to imagine when we purchase that first abode that we’ll ever live anywhere else. But think of it this way: Wouldn’t it be nice to know that when it does come time to sell your beloved first home, you’ll be walking away with a nice chunk of change to put toward your next dream house?

If you’re hoping to buy a property in a competitive market, then you probably know that a bidding war with another hopeful buyer may be in the cards. But you don’t have to be a real estate tycoon to know how to negotiate; the key to surviving a bidding war is to be prepared. Here’s what you need to know before you head into battle: Cash is a universal language that everyone understands.

When you think of what makes a quintessential New York City apartment—one with a lot of character and charm—you probably picture a pre-war apartment (even if you don’t realize it). Built between the 1880s and 1939 in both Manhattan—the highest concentration is in the Upper West Side, though you can find them pretty much all throughout the borough—and some areas of Brooklyn, pre-war buildings were made with a lot of personality.

If you’re looking into buying a home, your mind is probably focused on things like your down payment and monthly mortgage costs, but those aren’t the only costs that come with owning a home—there are hidden costs you might not be thinking about, too.

The wrong real estate agent—or just one who doesn’t jibe with your vibe—can cast a shadow on your whole home buying experience. That’s why it pays to know what things to look for (and the right kinds of questions to ask) when searching for a reliable real estate agent. So to help make your search a little easier, we called on William E Brown, President of the National Association of Realtors (NAR), for advice on how to find the best agent for your unique homebuying needs.

Online mortgage programs are becoming increasingly popular — and it’s not hard to see why. With an application process that takes less than five minutes, they can almost be thought of as an “express lane” for a loan. But while some prospective buyers, particularly those who have been through the process before, may appreciate their speed and ease, those same features can feel overwhelming to first-time buyers.

You’ve heard it before: “No house is going to be perfect. Even your dream home will have a few compromises.” That’s true. When you’re house hunting, it’s important to keep an open mind rather than getting stuck in one vision of what you’re perfect home will look like. However, there are a few instances where it’s okay to put your foot down.

The saying “hindsight is 20/20” can apply to most major decisions in life—you often don’t know how you could’ve done something better until it’s already been done. And in the case of selling your home, it definitely rings true. So what is it that home sellers wish they could’ve done differently, knowing what they know now? A recent Zillow report asked home sellers (both first-time and repeat sellers) to share their biggest regrets about the process.

When you’re a first-time home buyer growing dizzier by the minute walking through dreamy homes outside of your budget, it’s only natural to consider adding a home that needs a little “TLC” to your short list. Know this, though: fixer uppers come with some special considerations, especially for first-time homebuyers. Two years ago when my husband and I decided to take the plunge and buy our first home, we settled on a fixer upper.

There is so much that’s confusing about the home buying process as a first-timer, and all I can really do (beyond writing articles like this one) is absolutely promise that an attentive real estate agent and a knowledgeable mortgage broker will be your lifelines. You’ll be surprised how much you learn about earnest payments, escrow and amortization in that month or so it takes to close. Definitely more than you paid attention to in college accounting, I’ll tell you that much.

Contrary to what some might believe, avocado toast isn’t what’s keeping Millennials from buying houses—rather, a shortage of affordable homes is stopping prospective homebuyers from their purchasing dreams, no doubt combined with things like student debt (according to Forbes, more than 44 million people face a total of $1.3 trillion of student debt, more than any other kind of debt, outside of mortgages).