6 Ways Buyers Can Save on Their Mortgage

Photo Credits: Kindel Media With mortgage rates on the rise, it’s easy to feel extra financial stress when buying a new home. In the past month, mortgage rates have hovered around 7%. They are predicted to fall in the second half of the year, but affordability continues to be an issue when buying a home. Here are 6 ways homebuyers can save on their mortgage and afford their dream home.   Shop around: Credit: Alena DarmelTens of thousands of dollars can be saved from shopping around and getting quotes from multiple different mortgage lenders. Different lenders have different qualifications and standards used when deciding who to lend money to, which is why the exact same person can get such different quotes from other lenders. Make sure you get at least two different quotes, but keep in mind that buyers who get five or more quotes can save almost three times as much money over the lifetime of their loan then those who get two quotes.    Negotiate:While you may know it's standard to negotiate the price of your new home if necessary, many people do not consider negotiating a mortgage rate. The amount of room to negotiate a mortgage can depend on the lender but some lenders will consider negotiating on either the rate or the closing costs. One way to improve your negotiation is to show quotes from other lenders and ask for a better rate from them in order to keep your business. Do not be afraid to ask for a better rate, it never hurts to ask!   Buy down the mortgage points:Mortgage points are a type of prepaid interest, meaning you can choose to pay more upfront and receive lower interest rates and monthly payments. The downside to this is that it costs more upfront; however, if you have the money to pay extra to buy down mortgage points you can save money in the long run. When considering whether buying down mortgage points is for you, ensure you have enough money saved that spending the extra money on points will not deplete your savings past a point you are comfortable with.   Ask for discounts: Few people know that banks can sometimes offer “relationship discounts” to customers that already bank with them. These discounts can include waiving the loan processing fee or a certain percentage off of your loan. Ask your bank if they offer any relationship discounts before you sign your mortgage!   Watch out for float-down policies: A float-down option in a mortgage allows the borrower to adjust their rate downward if mortgage rates decrease during the closing timeline. Different lenders have different rules regarding their float-down policy, so make sure you ask what your lenders are before you have locked down your mortgage with them. Some policies include charging a percentage of your loan amount as a fee if you switch to a lower rate. Educate yourself on the float-down policy for the different lenders you are considering!   Consider the terms: Although a 30-year mortgage is the most common length for homebuyers, a 40-year mortgage may also be offered by some lenders. A longer loan saves you money on your monthly payments, but you will likely be paying more interest in the long term. You also may be able to get an adjustable-rate mortgage, which starts with a lower interest rate and then resets to the current rate every 5 to 7 years. Refinancing a loan down the road when there are lower interest rates is another thing to consider. 

View more

Why Fall is a Great Time to Sell A Home

Credit: Vlada Karpovich Fall is just around the corner in Boise. The leaves begin to change and the fall smells fill the air. Although the spring market is always spoken about as the best time to sell a home, at Lysi Bishop Real Estate we find the Fall market to be one of our favorites.   Serious buyers are in the market: Many buyers sense the change in season and want to nest just in time for the holidays. This can work to your advantage as a seller because the buyers looking at your home will feel an urgency to choose to move in before the snow hits.   Autumn can add ambiance to your home: Fall colors can make a house feel homey and cozy. Autumn smells in the air and a fireplace going can help buyers envision themselves living in your home. Trees full of leaves changing color can also add to the curb appeal of your home! Just make sure to keep leaves on the ground raked and the gutters clear.    Less competition: With fewer homes for sale in the fall, your home has a better chance of standing out.  Quicker sales can occur because businesses such as home inspectors and mortgage lenders will have fewer customers, and therefore be able to prioritize your home more. This is a major advantage with the fall market!  

View more

Things to Consider When Remodeling a Kitchen

Credit: Rene Asmussen The kitchen is the center of a house: it’s where family and friends congregate to cook, relax, and entertain. Updating and remodeling your kitchen can completely change the feel of your home and it is very important to think deeply about the changes you want to make to ensure you create a beautiful and functional kitchen. Here are a few things to keep in mind while planning your remodel!   Budget: First on the list is how much money you are willing to spend on your new kitchen. Are you going to update existing items, such as painting cabinets or changing out sink fixtures? Or do you want to do a larger remodel and break down walls or change the floorplan of the kitchen? It's important to research each item you want to change or update, and look into pricing. Consider making a list of all the items and their respective costs, and see if the total fits within your budget. Watch out for hidden costs such as paying a contractor for bigger changes or if you need to redo plumbing and electrical with the new updates.   How long will you be in the home: If the home you are in is temporary and you are going to be moving in the next five years, now might not be the time to go all out and build your dream kitchen. Saving your money now and spending it on your new home may be a better option. However, this does not mean you shouldn’t still make smaller and more affordable changes to enjoy this kitchen while you are still in it!   How often do you cook: Do you spend your nights cooking gourmet meals or do you find yourself eating out most nights? If the second option sounds more like you, it may not be the most economical choice to spend a lot of money on the newest and greatest appliances that will barely get used. However, if cooking is a passion of yours, it makes more sense to splurge on appliances that will help you hone your cooking skills.   What do you cook: Another thing to consider is what you cook the most, and how you can add things to the kitchen to make these things easier to make. For example, if you cook a lot of pasta, a pot filler faucet over your stove will eliminate the need to carry a heavy pot full of water from the sink every time. Also, consider who cooks - is it typically one person in the kitchen or do you need room for multiple people to cook side by side? It's important to make sure your kitchen is both aesthetically pleasing as well as functional.

View more