Real Estate Information Archive

Equity is the difference in what your home is worth and what you owe. Ideally, as the value goes up and the unpaid balance goes down with each amortized payment made, the equity grows from two directions.

This dynamic leads to increasing a person’s net worth much faster than many other investments.

A homeowner has minimal control over value. It is necessary to maintain the property to avoid depreciation and make good decisions on capital improvements. After that, appreciation is generally controlled by supply and demand and the economy.

Mortgage management is something that the homeowner does have control. Making the decision to select a shorter term mortgage at a lower interest rate can have an impact on equity build-up. Lower interest rates amortize faster than higher interest rates which will also affect equity growth. Currently, it is possible to get a 1% lower rate on a 15 year mortgage than a 30 year mortgage.

Compare two alternatives of a 30-year and a 15-year mortgage. The payments will definitely be higher on the shorter term because it pays off quicker. However, if a person can afford the higher payments of $362.53 more per month in this example, the equity will be greater. Even after you take into consideration the higher payments, the increased equity is $17,236 at the end of the seven year holding period.

Another decision that can affect equity build-up is making additional principal contributions along with the regular payments. Whether you’re making an occasional lump sum payment toward principal or regular monthly contributions, it will save interest, build equity and shorten the term on a fixed rate mortgage. Estimate your personal savings with this Equity Accelerator.

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Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

As the spring “spruce up” season approaches, the fancy of Montgomery AL real estate owners often turns to home improvement projects.  Whether these be large or small, interior or exterior, for resale purposes or for personal enjoyment, do-it-yourself or contracted out, nearly 30 % of renovators maintain that they are hoping to increase the value of their home and recoup as much of the cost as they can.

Taking precedence would be the non-glamorous “basic updates” to maintain a healthy, solid, safe home To that end, deal with repainting, fixing the leaky roof, and replacing rotting wood, wiring, and/or plumbing as needed are ongoing needs.

And then?

• One of the top remodeling projects is as simple as replacing the siding on the outside of your home, thus increasing both protection and curb appeal to your Montgomery AL real estate.  Choose either fiber-cement to recoup 78% of the cost or vinyl for a payback of 69.5 %.
   
• Updating your windows comes next. Whether you select vinyl or wood windows to replace drafty old ones, you can recoup up to 69.1 percent of the project's cost on your home's resale value.  New windows do much for the look of a home inside and out and certainly contribute to energy-efficiency.
   
• Since kitchens have become increasing important facets of Montgomery AL real estate, remodeling updates in this room pay off and are well-worth considering.   According to HGTV, you can expect to recoup 60%-120% of your investment on a kitchen remodel, as long as you don’t go overboard. You should never make your kitchen fancier than the rest of the house--or the neighborhood, for that matter.
   
• And don’t forget energy-efficiency in the kitchen improvement plans. . By using energy-efficient appliances, households can save up to $400 per year on utility bills.  Click here for a few simple steps to follow when shopping for energy-efficient appliances.
   
• The National Association of Home Builders states that adding a bathroom to a single-family detached home has a strong impact on the home's overall value.  An additional bathroom, even a half bathroom, adds significant value to your home, according to the experts at NAHB.  A half bath may add up to 10.5 percent to a home’s value, while a full bath can tack on an additional 20 percent.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Originally, in 1913 with the Sixteenth Amendment, Income Tax allowed a deduction on any interest paid by a taxpayer. Prior to World War I, most interest was paid for business purposes and very little paid by individuals. Credit cards, revolving credit, student loans and home equity loans that would charge interest would not become popular for decades.

However, by the 1930’s, the Federal Housing Authority was created to help people to finance homes. Later, other quasi-governmental agencies like FNMA, FHLMC and GNMA were created to help facilitate mortgage lending. 

Even though, Congress never intended to use this deduction to encourage homeownership, it has certainly benefited millions of people who couldn’t pay cash for their home. This deduction has made owning a home more affordable for tens of millions of people.

The Tax Reform Act of 1986 eliminated the deduction of interest on most personal debt with the exception of qualified mortgage interest debt. Two new terms were introduced to specify what was qualified.

Acquisition Debt is the amount of debt incurred, up to a maximum of $1,000,000, to buy, build or improve a principal residence or second home. It must be a recorded lien and the amount cannot be increased by refinancing. In other words, the acquisition debt is a dynamic amount that decreases as the loan amortizes.

Home Equity Debt is any amount up to a total of $100,000 over Acquisition Debt. It must also be a recorded lien against either the first or second home. It can be used for any purpose and is no longer restricted to medical or educational purposes.

In the example below, a person borrowed money to buy a home and the entire first mortgage was acquisition debt. The unpaid balance was reduced by the payments made and the acquisition debt followed accordingly. At some point in the future, after the home had gone up in value considerably, the owner refinanced a much larger amount.

The existing acquisition debt was transferred into the new mortgage. Any borrowed funds that were used for capital improvements could be added to the existing acquisition basis. The interest on those funds would be deductible.

The owner/borrower could also deduct the interest on up to a maximum of $100,000 of home equity debt. If there was still debt above the acquisition and home equity debt, it would be classified as personal debt and the interest on it would not be deductible.  

Lenders are not concerned if they are making a tax deductible mortgage on a home. They want to make sure there is sufficient equity in the property to secure the mortgage should it have to be foreclosed. A homeowner should consult with their tax professional if there is a question about deducting the interest on their mortgage.

Click Here to use a Refinancing Analysis.

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Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Following his heart surgery last week, after an issue was discovered during his annual physical, President George W. Bush encouraged everyone to get regular check-ups. 

Another important checkup that should be done on a regular basis and can be just as beneficial for your finances is an annual homeowner advisory. Why would you treat your investment in your home with less care than you treat your car or even your HVAC system?

Consider investigating the following:

• Know the value of your home by obtaining a list of comparable sales in your immediate area as well as what is currently on the market for sale.

• Have you compared your assessed value for tax purposes to the fair market value in order to possibly reduce your property taxes?

• Even if you’ve refinanced in the last two years, can you save money and recapture the cost of refinancing in the time you plan to remain in your home?

• Have you considered reducing your mortgage debt with low-earning cash reserves that will not be needed in the near future?

• Have you considered investing in rental homes in good neighborhoods to increase your yields and avoid the volatility of the stock market?

• Recommendations of repairmen and other service providers from a trusted source who deals with them more frequently than you do.

Our goal is to create a lifelong relationship to help you be better homeowners. We want to be your “go to” person whenever you have a real estate question. We want to help you not only when you buy and sell but all of the years in between.

We want to provide good, consumer-based information about homeownership on a regular basis through email and social networking. If it benefits you by helping you be a better homeowner, hopefully, you’ll consider us your real estate professional for life.

Anytime you or your friends need help, please call. Knowing where to get the answer is just as important as knowing the answer. If you’d like information on any of the items we suggested, please let us know.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

When we consider becoming more “green” at home, we often think about kitchens and bathrooms, spaces which use a lot of energy and water and can pollute the environment of your Montgomery AL home.  While these are certainly high-impact areas that could easily be made more efficient, there’s also much potential for going green in your home office. Check out these simple suggestions:

• Paper:  Look for paper made with the highest amount of recycled post-consumer content. When you can, print on both sides of the paper. If you need to shred documents, keep that shredded paper to use when sending packages or even for storing items such as fragile holiday decorations or china. To recycle paper on a regular basis, have a small recycling box under the desk in your Montgomery AL home office.
• Printer cartridges:  Every year hundreds of millions of cartridges are used in this country--and 70 percent of those end up in landfills. However, cartridges are actually easily refilled/recycled, and you can also get paid to turn in used ones. There are a number of online sources that will supply a pre-paid shipping label to mail accepted cartridges in exchange for cash. Or you can turn in your used cartridges for recycling at some office supply stores and earn a credit for them.
• Power strips:  Get a single power terminal that connects to all the ancillary gadgets that run with the computer in your Montgomery AL home office. This way the moment you are not using the computer, they can be turned off, too. Keeping the computer and its accessories on through the night consumes more than 30% of the total power consumption when in use.
• Computer hardware:  In addition to being convenient, laptops are said to consume less than 1/8th the power of a regular desktop. With laptops now more affordable, it is advisable to switch to a laptop in your next purchase.  Likewise, LCD and LED monitors use about half the energy compared to a traditional CRT monitor.
• Used manuals and electronics:   Recycle unneeded computer manuals and “how-to” guides by donating them to local workforce development groups and charity organizations.  This also applies to old laptops, printers, and other office equipment. And don’t forget used batteries, cartridges, PDAs, and obsolete cell phones. What you may consider trash, another person may consider a life-changing gift!

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

With interest rates so low and economic uncertainty so high, it is no wonder that many owners of Montgomery AL homes are considering paying off, or at least paying down, their mortgages earlier than expected. The topic is a controversial one, however, with real estate and financial experts vociferously arguing about both the advantages and disadvantages of such a move.

Proponents of early pay-offs cite benefits such as a strong sense of financial stability, added housing security, and financial flexibility, whereas opponents point out the loss of liquidity and investment opportunities.  Both sides agree, however, that you should pay off high interest loans first, establish a comfortable emergency fund, and utilize a mortgage calculator to analyze financial gain or loss incurred in the early pay-off of the mortgage on your Montgomery AL home.

In the event that you decide that you do wish to own your Montgomery AL home free and clear now—or in the near future-- there are steps you need to follow.   First, the process is the same whether you obtained your loan from a bank, a credit union, or a mortgage broker/banker. You signed a promissory note and a deed of trust (or mortgage) which was recorded among the land records in the jurisdiction where your property is located.

Before you send in a check, contact your lender and get a written payoff statement, which will include a per-diem interest. Remember that interest accrues daily, and you have to pay the lender up to the date it actually receives your check.( Many title attorneys actually send the lender a few more days' interest just to be on the safe side. Legitimate lenders will refund any overage.)

After you have paid the lien off, some documentation (release or satisfaction) must be recorded among those same land records reflecting that the loan has been paid in full. Talk to your lender as to its procedure. Most will take care of recording the release for a nominal fee; some will send you the promissory note and deed of trust marked "paid and canceled" and ask you to handle the recording.  Be sure you get the original documents back from the lender.

You should also (1) advise your insurance carrier in writing that you no longer have a mortgage; (2) request the real estate taxing authorities in your jurisdiction send you the original tax bills; and (3) stop any automatic payments with your bank.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Generally speaking, real estate articles dealing with the buying, selling, or appraisal of a Montgomery AL home render advice dealing with the condition and appeal of the property.  Would-be sellers are reminded to pay particular attention to curb appeal, cosmetic repairs, de-cluttering, and maintenance matters, while potential buyers are urged to focus on location, amenities, and structural stability. There are other, less publicized factors that impact a Montgomery AL home’s value, however, and they, too, should be included in a buyer’s or seller’s check list.

The Appraisal Institute, the nation’s largest professional association of real estate appraisers cautions homeowners and potential home buyers that bad neighbors can significantly reduce nearby property values.

Bad neighbors can include homeowners with annoying pets, unkempt yards, unpleasant odors, loud music, dangerous trees and limbs, or poorly maintained exteriors. A homeowner or prospective home buyer should visit a street on several days at various times to learn more about what is happening in the neighborhood. A home’s proximity to a bad neighbor also can impact the rate of potential decline in value.  “I’ve seen many situations where external factors, such as living near a bad neighbor, can lower home values by more than 5 to 10 percent,” said Appraisal Institute President Richard L. Borges II, MAI, SRA.

If your Montgomery AL home’s value is jeopardized by such a situation, you should consider the following actions:

• Join with other neighbors and approach the bad neighbor together.
•  Check subdivision restrictions with the municipality and/or HOA for any violations.  If some are found, report the bad neighbor and request an investigation. A call to the local health department also may be warranted.
• Hire an attorney. If all else fails, the cost of an attorney will likely be less than the home’s potential loss in value.

Another type of a “bad” neighbor can be a business or government enterprise whose very existence drives down the value of your property.  Potential buyers of a Montgomery AL home would be well-advised to

be on the lookout for landfills, power plants, cell towers, commercial warehouses, funeral homes, a closed school or other public facility, and a number of foreclosed homes in a neighborhood, as these also can negatively affect a home’s value.

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.

When we consider becoming more “green” at home, we often think about kitchens and bathrooms, spaces which use a lot of energy and water and can pollute the environment of your Montgomery AL home.  While these are certainly high-impact areas that could easily be made more efficient, there’s also much potential for going green in your home office. Check out these simple suggestions:

• Paper:  Look for paper made with the highest amount of recycled post-consumer content. When you can, print on both sides of the paper. If you need to shred documents, keep that shredded paper to use when sending packages or even for storing items such as fragile holiday decorations or china. To recycle paper on a regular basis, have a small recycling box under the desk in your Montgomery AL home office.
   
• Printer cartridges:  Every year hundreds of millions of cartridges are used in this country--and 70 percent of those end up in landfills. However, cartridges are actually easily refilled/recycled, and you can also get paid to turn in used ones. There are a number of online sources that will supply a pre-paid shipping label to mail accepted cartridges in exchange for cash. Or you can turn in your used cartridges for recycling at some office supply stores and earn a credit for them.
   
• Power strips:  Get a single power terminal that connects to all the ancillary gadgets that run with the computer in your Montgomery AL home office. This way the moment you are not using the computer, they can be turned off, too. Keeping the computer and its accessories on through the night consumes more than 30% of the total power consumption when in use.
   
• Computer hardware:  In addition to being convenient, laptops are said to consume less than 1/8th the power of a regular desktop. With laptops now more affordable, it is advisable to switch to a laptop in your next purchase.  Likewise, LCD and LED monitors use about half the energy compared to a traditional CRT monitor.
   
• Used manuals and electronics:   Recycle unneeded computer manuals and “how-to” guides by donating them to local workforce development groups and charity organizations.  This also applies to old laptops, printers, and other office equipment. And don’t forget used batteries, cartridges, PDAs, and obsolete cell phones. What you may consider trash, another person may consider a life-changing gift!

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

Interested in buying a bank-owned home? Get bank-owned listings alerts FREE!

You can reach Sandra by filling out the online contact form below or give her a call anytime.