Color Your Walls With The Right Mood

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Many studies have proven that people generally reabanjoct to color in very predictable ways–especially the color of their surroundings. Of course, those reactions are not always the same for everyone; some people associate certain colors with experiences unique to themselves. On the whole, though, you can choose wall colors in your home to help evoke or enhance different reactions–in yourself and others.

Moods Colors
Coziness light shades of yellow, orange, and red
Cleanliness white
Comfort deep purples, pink
Coolness blue, white
Cheerfulness yellow
Energy darker shades of yellow, orange, red
Playfulness primary colors (bright red, blue, yellow)
Serenity green, blue, light gray, beige
Refreshment green
Hunger red, orange, brown tonews

For more tips please visit www.cbbaker.com

Categories: Color your world, wilmington, wilmington nc, Wilmington NC Neighborhoods, wilmington nc real estate

LOWER RATE: Seven Smart Ways To Reduce Your Mortgage Rate

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Predicting interest rates in today’s economy is at least as hard as winning in Las Vegas. But even if rates are on the rise, there are a number of options you can exercise to get the lowest rate possible on your home loan. Consider the following strategies.

1. Consider An Adjustable Rate Mortgage (ARM)

{short description of image}Even though the rate on your loan may fluctuate, an ARM will allow you to enjoy a lower monthly payment at the outset. Traditional ARMs adjust every year, but ARMs now exist to suit just about everyone with 3- and 5-year adjustment periods, even a single adjustment at the 7-year mark.

2. Float Down

Financial products introduced recently will lower your rate if market rates fall, but won’t raise it if rates creep up again.

3. Quick Close

If you can settle on your loan quickly (say, 30 days or less), some lenders will agree to shave percentage points off your rate.

4. Lock In

If you fear rates are going to rise, lock in early before they do. Some lenders allow a float-down option, but with an up-front fee.

5. Pay Points

If you’re willing to pay some interest up front (known as points), you can get a fixed-rate mortgage with a lower interest rate.

6. Stay Awhile

If you agree to keep the same loan for five years or longer, some lenders will cut their interest rate. If you do move or refinance before the agreed-upon deadline, you may have to pay a penalty of about 1% of your loan.

7. Use Good Credit To Negotiate

Do you have A-1 credit? If so, you’re a hot commodity for lenders. They may even be willing to reduce closing costs to get your business. If interest rates are firm, ask for a reduction in fees for document preparation, processing, courier services, copying, underwriting, appraisal or application. Other reductions might include: fewer or no points, lender’s attorney’s fee, commission rate (for mortgage brokers) and the credit check fee. On an adjustable rate mortgage, ask for a lower starting rate.With so many options available, you may need a professional to help you choose the best program for your situation. Call us today to see what’s available in your area.

 

Categories: Lower your Mortgage, Mortgage, Mortgage 101

Special Tax Issue | Wilmington NC real estate

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The Taxes IssueJust like clockwork, tax time hits us right after some of the mwilmington nc real estateost enjoyable times of the year where we spend time with family and friends, perhaps enjoy a few days off work, and just relax. Then reality hits: Resolutions must be made! You need to eat better, exercise more, and (gasp!) get control of your finances. Now. In the new year.

Relax. If you own a house, your home is helping you out big time financially at tax time. You may not realize this, but it’s true. Homeownership is made affordable for many families because of how Uncle Sam’s tax deductions result in the federal government contributing from 10% to 39.6% (depending on your tax bracket) toward monthly home mortgage interest and property tax payments.

In this edition, we have outlined some basic home-related tax facts you should be aware of to make the most of available tax savings. Be sure to consult a tax professional for complete information applicable to your specific situation.

Work it Out.

Is your home office deductible?

If you keep records, schedule appointments and carry other such activities from your home office, some common home-office expenses, such as utilities, insurance, repairs, cleaning and depreciation, may qualify for a deduction, even if you do the actual work in another location. Be aware, however, any depreciation claimed after May 6, 1997, will be taxed at 25% if the residence is sold for a gain, whether or not the property has been converted to personal use.

Starting in 2013, there is a simplified home office deduction calculation to bypass maintaining detailed expense records. Simply deduct $5 for every square foot of home office space used, up to a maximum of 300 square feet or $1,500. This simplified expense is recorded on Schedule C rather than Form 8829 which allows you to separately deduct mortgage interest and real estate taxes on Schedule A.

SMART TIP: If you (or your family) use your home office for non-business purposes, it cannot be claimed on your tax return. To claim home-office deductions, the space must be used exclusively for business purposes.

 

Categories: home tax, tax advantage, Taxes 101, wilmington nc real estate, wilmington nc relocation

16 Things Every Home Buyer Should Know About Adjustable Rate Mortgages – But Shouldn’t Be Afraid To Ask

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www.WilmingtonNC-realestate.com

When Wilmington NC  home buyers go shopping for the best Adjustable Rate Mortgage (ARM) they can find, these are the 16 essential things they should ask about:

Up/Down on Paper

  1. The initial interest rate or “qualifying” rate.
  2. The length of time the interest rate and monthly payment will remain the same as at the start. Also the length of time between rate and payment adjustments.
  3. The index to which the ARM is keyed (Treasury bills, etc.)
  4. The current index level.
  5. The margin percentage between the index and the mortgage interest rate.
  6. How the index and margin are combined to arrive at a loan interest rate (both initial and adjusted rates).
  7. The adjustment (if any) to be made in interest rate and monthly payment, if the index remains the same.
  8. Whether or not the loan has an interest rate cap (limit). If so,
    1. the limit to the increase in the interest rate at the time of each adjustment,
    2. whether or not there is a carryover to the next adjustment period of any increase in the index rate that goes over the specified limit, (that is, can increases be applied in subsequent years when the rate increase is below the cap), and
    3. whether or not a periodic rate cap applies to the first adjustment and/or rate decreases.
  9. Whether or not a life-of-the-loan interest rate cap is available. If so, the minimum and maximum rates.
  10. Whether or not a periodic payment cap is available. If so, ask about:
    1. the maximum monthly payment increase possible at any adjustment, and
    2. the payment cap, does it apply to the first payment adjustment?
  11. The initial annual percentage rate (APR) of the loan, which may fluctuate in later years.
  12. In case of negative amortization, how often the loan is recast to pay off the increase in principal. After recasting, the limit (if any) on the amount of increase in payment.
  13. Whether or not negative amortization may occur if an interest rate increase causes a monthly payment to accrue over the cap limitation. Whether or not the payment cap applies to any increase caused by periodic recasting of the loan because of negative amortization.
  14. Whether or not the loan can be assumed by a future buyer. If assumable,
    1. the qualifications involved, and
    2. whether or not the original interest and payment caps will hold. If not, the specifications for new caps.
  15. Whether or not the ARM can be converted to a fixed-rate loan at any time.
  16. Whether or not the loan has open-end credit.
  17. If you would like a further explanation of ARM features, give us a call or send an e-mail question. We’ll be glad to discuss this sometimes-complicated subject with you.

 

Categories: Adjustable Rate Mortgages, Wilmington NC homes, wilmington real estate stats, Wrightsville Beach NC

How much money should I plan to take to settlement?

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Pennieswww.WilmingtonNC-realestate.com

It’s difficult for anyone to say exactly how much money you will have to take to settlement, because some expenses are pro-rated right up to closing. Federally-required settlement-cost estimates help, but they are only best guesses. It’s wise to be prepared for some unexpected closing costs. Some of the expenses typically paid at settlement are:

  • Prepayments of related costs, such as a year of hazard insurance and several months advance on property taxes. Rather than closing fees, these are escrow items required by many lenders.
  • Points and interest rate, which are the most variable expenses, and could change on the morning of settlement unless the buyer has a locked-in loan rate.
  • Interest on the loan, property taxes, homeowner association dues, and other costs the homeowner normally prepays or pays on a set schedule. A change in settlement date can dramatically alter the amount due on these items.
  • The cost of title insurance is another expense paid at closing. Often, purchasers are given the option to buy a piggyback policy that protects them, just as the mandatory policy protects the lender’s claim in case of a dispute over title. The cost to the buyer is not usually listed on pre-settlement estimates, but is generally paid at closing.

Some of the items listed on settlement sheets may have already been paid, such as credit report fees, loan origination fees, survey of the property, etc.

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Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.