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Jennifer Bunker
CRS, GRI
Owner/Broker
Coldwater Creek
Properties
Utah's Wasatch
Front
Northern Utah 84405
Office:
801.475-6025
Cell:
801-791-0365
Fax:
801-475.6027
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Choices That Will Affect Your Loan
- Mortgage term. Mortgages are
generally available at 15-, 20-, or 30-year terms. The
longer the term, the lower the monthly payment if the
same amount is borrowed. However, you pay more interest
overall if you borrow for a longer term.
- Fixed or adjustable interest
rates. A fixed rate allows you to lock in a low rate for
as long as you hold the mortgage and is usually a good
choice if interest rates are low. An adjustable-rate
mortgage is designed so that interest rates will rise as
interest rates increase; however they usually offer a
lower rate in the first years of the mortgage. ARMs also
usually have a limit as to how much the interest rate
can be increased and how frequently they can be raised.
ARMs are a good choice when interest rates are high or
when you expect your income to grow significantly in the
coming years.
- Balloon mortgages offer very low
interest rates for a short period of time—often three to
seven years. Payments usually cover only the interest,
so the principal owed is not reduced. However, this type
of loan may be a good choice if you think you will sell
your home in a few years.
- Government-backed loans,
sponsored by agencies such as the Federal Housing
Administration (www.fha.gov)
or the Department of Veterans Affairs (www.va.gov),
offer special terms, including lower down
payments or reduced interest rates—to qualified
buyers.
Slight variations in interest rates, loan amounts, and
terms can significantly affect your monthly payment.
For
help in determining how much your monthly payment will be
for various loan amounts, use this online calculator.
http://www.realtor.org/realtororg.NSF/pages/FMCalculators?OpenDocument&Login |
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5
Things to Understand About Homeowners Insurance |
1. Look for exclusions
to coverage. For example, most insurance policies do not
cover flood or earthquake damage as a standard item. These
coverages must be bought separately.
2. Look for dollar limitations on claims. Even if you are
covered for a risk, there may a limit on how much the
insurer will pay. For example, many policies limit the
amount paid for stolen jewelry unless items are insured
separately.
3. Understand replacement cost.
If your home is destroyed you'll receive money to replace
it only to the maximum of your coverage, so be sure your
insurance is sufficient. This means that if your home is
insured for $150,000 and it costs $180,000 to replace it,
you'll only receive $150,000.
4. Understand actual cash value. If you chose not to
replace your home when it's destroyed, you'll receive
replacement cost, less depreciation. This is called actual
cash value.
5. Understand liability. Generally your homeowners
insurance covers you for accidents that happen to other
people on your property, including medical care, court
costs, and awards by the court. However, there is usually
an upper limit to the amount of coverage provided. Be sure
that it's sufficient if you have significant assets. |
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10 Ways
to Lower Homeowner's Insurance Costs |
1. Raise your
deductible. If you can afford to pay more toward a loss
that
occurs, your premiums will be lower.
2. Buy your homeowners and auto
policies from the same company and you'll usually qualify
for a discount. But make sure that the savings really
yields the lowest price.
3. Make your home less susceptible to damage. Keep roofs
and drains in good repair. Retrofit your house to protect
against natural disasters common to your area.
4. Keep your home safer. Install smoke detectors, burglar
alarms, and dead-bolt locks. All of these will usually
qualify for a discount.
5. Be sure you insure your house for the correct amount.
Remember, you're covering replacement cost, not market
value.
6. Ask about other discounts. For example, retirees who
are home more than working people may qualify for a
discount on theft insurance.
7. Stay with the same insurer. Especially in today's tight
insurance market, your current vendor is more likely to
give you a good price.
8. See if you belong to any groups—associations, alumni
groups—that offer lower insurance rates.
9. Review your policy limits and the value of your home
and possessions annually. Some items depreciate and may
not need as much coverage.
10. See if there's a government-backed insurance plan. In
some high-risk areas, such as coasts, federal or state
government may back plans to lower rates. Ask your agent.
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5
Things to Understand About Title Insurance |
1. It protects your
ownership right to your home both from fraudulent claims
against your ownership and from mistakes made in earlier
sales, such a mistake in the spelling of a person's name
or an inaccurate description of the property.
2. It's a one-time cost usually based on the price of the
property.
3. It's usually paid for by the
sellers.
4. There are both lender title policies, which protect the
lender, and owner title policies, which protect you. The
lender will probably require a lender policy.
5. Discounts on premiums are sometimes available if the
home has been bought within only a few years since not as
much work is required to check the title. Ask the title
company if this discount is available. |
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