It is simple mathematics: Most homeowners are only comfortable with a 30 year fixed rate mortgage. Most homeowners do not have their mortgage for longer than 5 years. Therefore, most homeowners are paying thousands of dollars in additional interest just because they don’t know all of the options available to them.
For example, today’s 30 year fixed rate mortgage through company A is 5.75%. That same company will provide a fixed rate of 5.5% on a Hybrid fixed rate program that is fixed for 7 years and will then adjust annually thereafter. For a $300,000 mortgage, the 30 year fixed rate mortgage would cost $5,230 in additional interest in the first seven years and the remaining principal balance after seven years would be $1,250 higher. That’s a total of $6,480 of additional cost in seven years. Not to mention the mortgage payment would be $48 higher every single month.
This translates into much more than just a higher monthly payment or thousands more paid in interest for the same money. The $48 per month could have allowed the borrower to afford $10,000 of more buying power today. With just 5% appreciation, that $10,000 would grow to $14,000 in value. That additional equity translates into $40,000 additional buying power for the next purchase assuming 10% down. Or, the $48 could go into a company matching 401K program providing over $6,000 in retirement savings (not including any gain on the account) over the seven year period.
Knowing the different mortgage programs that are available is essential to making the right decision. For some, a 30 year fixed rate mortgage may be the most cost effective option should they keep the same loan until it is paid off. Many homeowners may plan to live in a home ‘forever,’ but seldom does that mean they won’t refinance or take cash out to improve the home. Then, when interest rates drop, they refinance the total debt to save money. Having a financial plan and being realistic about where you want to be in 5 or 10 years will help you choose the right mortgage.
Washington mortgage broker and Spokane Real Estate Agent, Michael Sanborn, tells his clients that there are over a hundred mortgage programs to choose from. “Homeowners should research the various mortgage programs available online,” says Sanborn. “There are many resources, including the Upfront Mortgage Brokers Association or the Mortgage Professor, that allow folks to see what is available before they caught up in the emotional phase of buying a home. They need to separate the financial aspect of financing a property from the emotional aspect of owning a home.”
Holiday Home In Tuscany
Finding and buying a holiday home in Tuscany is fun-filled and
hassle-free. You’ve got to be kidding! Try annoying, agonising,
frustrating, irritating, exhausting search for the impossible dream.
We went through every emotion, gave up, and then fell into the dream
holiday home in Tuscany that we thought existed only in the imagination.
We only knew that we had found the ideal location because we had spent
the previous two days looking at twenty-four different properties and
rejecting the lot. And before that we had spent six months trawling the
Internet. We had also spent several holidays in Italy and knew the
region we wanted – we wanted our holiday home in Tuscany to be set
somewhere in the hills of the Pisa – Florence – Siena triangle.
It was the food that first attracted us to Tuscany. Patricia, my wife,
adores the lamb chops you get in that area, and I the bruschetta with
its generous sprinkle of goats cheese. Of course there is also
Michelangelo, Leonardo daVinci and the opera at Verona.
To pass any church in Tuscany, no matter how insignificant, is to miss
some work of genius.
Patricia scoured the Internet. Our standards were high. Ground floor
with terrace or first floor with balcony. A swimming pool. Near a decent
sized town and within walking distance of a restaurant or bar. Good
transport links, and close to places of interest. If we were to buy a
holiday home in Tuscany then we knew what we wanted.
One piece of property we discovered on the internet interested us and
when we showed an interest it suddenly jumped in price from €110,000 to
€150,000. Sometimes emails were not replied to or else we were pestered
with emails and phone calls about property well outside our criteria.
See our own website: http://www.worldwide-infomedia-services.com and
discover what we finally settled upon on. See our holiday home in
Tuscany. Drop us an email if you want any advice.
We over-nighted in a hotel near Siena and set off the next morning to
see a range of properties in the Arezzo area. The one property we loved
on the Internet – ground floor, patio, hedged garden – proved to be a
disappointment. Which also emphasised the need to walk the ground as
well as look at photographs.
We headed north. By the time we had done Bibbiena and its surrounding
hills, we were propertied out. The properties there were okay but… I
think the main problem was the area. Everything was unkempt and tatty.
One estate agent had no English so had employed an interpreter, Jessica,
a Swedish girl living in Italy. After looking at several properties with
Jessica, Patricia and I had a quick discussion and decided to give up on
our impossible search and head back to the hotel. Another ten miles in
the wrong direction seemed a waste of time when we were tired and
hungry. On the off chance we asked the interpreter what Poppi was like.
Jessica immediately became enthusiastic. Poppi was wonderful. Poppi was
a member of the Club "I Borghi più belli d'Italia", 50 selected villages
in Italy. We had to see it.
Jessica took us to see a developer in Poppi, he was waiting for us in
the square to take us out to the development, which is a mile from the
town, and a hundred meters from the railway station, bus stop,
restaurant and bar.
The development comprises ten blocks of five or six apartments each,
with a heated swimming pool and spa. The first two blocks were being
roofed the day we were there. I had a gut feeling we were to find that
illusive holiday home in Tuscany.
Niccolò is young, gorgeous (according to Patricia), unattached and
drives a Mercedes. Niccolò is an engineer and is determined to put only
the best of materials into the apartments. We didn’t understand half of
the technical details he bombarded us with. All I can say is that never
before in my life did I see COPPER guttering in an ordinary house never
mind a second home. Believe me you’ll not find that sort of workmanship
in many other holiday home in Tuscany developments.
From the site you have a clear view of the walled town of Poppi to the
south. We decided on a north-facing apartment. To the north, the
farmland rises sharply into a national forest and nature reserve. Before
he let us go Niccolò gave us an escorted tour of medieval Poppi. It is
beautiful, well maintained and protected from modernisation. Most
impressively, it is still a working town.
Initially, we decided to purchase a one-bedroom apartment, which we
subsequently upgraded to a two bed, with two bathrooms (one en suite),
and a combined working kitchen, dining area and sitting room. And an
integral garage and a wine cellar. All for €200,000.
Of course, in Italy purchase fees, legal fees; stamp duties etc. add
approximately 15% to the purchase price. And there are optional extras,
like air conditioning and the view. But that’s for another day. For now
we are happy, we have our holiday home in Tuscany.
John McAllister is an author, freelance writer and retired
accountant. John recently bought a holiday home in Tuscany. To get more
information on holiday homes in Tuscany please visit the website below.
http://www.worldwide-infomedia-services.com/.
Introduction to Buying Real Estate in Turkey
Buying a property in Turkey can be a very rewarding experience, both personally and financially, if you can avoid the pitfalls. Our straightforward guide is intended to give you an introduction to the Turkish property market and help you avoid making a mistake.
The prospects look promising. More than 21 million tourists visited Turkey in 2005, over 25 million are expected during 2006 and this figure is expected to double over the next few years. Turkey also has a booming economy and commenced EU membership negotiations in October 2005. These factors all bode well for the future.
Who can buy a property in Turkey?
New property laws introduced in early 2006 allow foreigners to purchase a property in Turkey provided there is a reciprocal agreement allowing Turkish citizens to buy a property in their home country. Turkey has such agreements with many countries, so rarely presents a problem for foreigners wishing to buy. Turkish law ensures that foreigners enjoy the same property rights as Turkish Citizens.
Types of property
New-Build
Typically purchased off-plan or within a newly completed complex. If buying off-plan you need to be sure the developer is financially secure and that the finished property will match the dream you’re sold. It’s worth checking whether the finish can be customised to your specification, for example can you choose interior fittings and flooring? Payment is usually made via a series of installments while the property is being constructed. It is sensible to check progress on-site, either yourself or via an agent, before making each payment.
New builds offer some peace of mind because (in theory) the property should be in very sound condition and require minimal work/maintenance in the early years of ownership. However unless you choose very carefully investment prospects may be limited.
Re-Sale
Re-sale properties vary widely, ranging from recently built properties on complexes to well established houses in their own grounds. Buying this way typically opens up a more interesting range of properties than new builds, but there is also greater scope for error so care is needed. If you’re fortunate the property will be in good order, or may have even been recently renovated, but carelessness could mean buying a money pit.
When buying always gauge how much work, if any, is required and factor this into your budget. However don’t let cosmetic work put you off, it’s often inexpensive to carry out and offers an ideal opportunity to personalise your new home.
There is a large gulf between the best and worst re-sale properties, so it’s worth taking the time to find a good property agent who can cherry pick the best for you to view.
Renovation Projects
Buying a renovation project requires a good sense of imagination along with a willingness to take on some risk. However it can be rewarding; overall costs may be lower than new-build/re-sale and you can renovate the property to your specific taste and specifications.
Unless you have building experience and speak good Turkish it’s a good idea to use a local project manager to organise and supervise the renovation - it will likely save you a lot of time and money.
ukryj reklamę