10/24/07
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www.MadisonVaRealEstate.com
Thursday, October 25, 2007
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Know The Score
You hear it everywhere: exotic loans, FICO scores, default risks, rising interest rates. Sounds like a lot of gloom and doom, doesn't it? While lenders are generating hot and heavy business, the truth is that it's still an excellent time to purchase a home. It's also time to educate your self about the economics behind securing a home loan.
The rate you are offered on a mortgage is largely based on your FICO score. What is FICO? It simply stands for Fair Isaac & Company, who developed our modern credit scoring models. The highest possible “score” is 850, and you'll need a rating of 620 or above to be considered for the best interest rates.
Higher income does not necessarily generate a higher score. Your payment history does have significant impact, however. If you have a higher credit score, you're probably in a position to accept a “prepayment penalty,” which is imposed when a loan is repaid early. But many borrowers who accept this “penalty” will end up paying a lower interest rate.
Be cautious out there - with so many types of loans available, you'll find some are a good fit for you and some are downright unwise. Real estate agents and mortgage specialists work together to determine the best avenue for you to follow, leading right up to the front door of your new home!
www.MadisonVaRealEstate.com
The rate you are offered on a mortgage is largely based on your FICO score. What is FICO? It simply stands for Fair Isaac & Company, who developed our modern credit scoring models. The highest possible “score” is 850, and you'll need a rating of 620 or above to be considered for the best interest rates.
Higher income does not necessarily generate a higher score. Your payment history does have significant impact, however. If you have a higher credit score, you're probably in a position to accept a “prepayment penalty,” which is imposed when a loan is repaid early. But many borrowers who accept this “penalty” will end up paying a lower interest rate.
Be cautious out there - with so many types of loans available, you'll find some are a good fit for you and some are downright unwise. Real estate agents and mortgage specialists work together to determine the best avenue for you to follow, leading right up to the front door of your new home!
www.MadisonVaRealEstate.com
Remodeling Dollars and Sense
REMODELING: DOLLARS & SENSE
Many homeowners remodel not just to improve the condition of their biggest asset, but also to improve the salability of said asset. Experience proves that some projects are better for improving your bottom line than others.
DO upgrade kitchens and bathrooms, as these rooms are most likely to get scrutinized by potential buyers. New countertops and appliances and sparkling fixtures will be a memorable aspect of your showings.
DO improve exterior features, too - first impressions count! Some of the most valuable work you can do is to add new siding, or to pressure clean or replace old dingy siding. Another outdoor biggie: decks. Most everyone loves relaxing outside, so adding or improving this amenity not only adds style to your lifestyle right now, but also increases your home's real and perceived value.
DO realize that the biggest return on your remodeling investment will come from more costly repairs, such as replacing windows or installing new air and heating units. If your home is in need of such improvements, it makes sense to do it now, before it costs more later.
Finally, DON'T turn your home into the neighborhood's priciest palace. You'll end up turning off potential buyers who will see other homes around the block offering more affordability. It's a delicate balance, but your home should offer the greatest value when compared with similar offerings.
www.MadisonVaRealEstate.com
Many homeowners remodel not just to improve the condition of their biggest asset, but also to improve the salability of said asset. Experience proves that some projects are better for improving your bottom line than others.
DO upgrade kitchens and bathrooms, as these rooms are most likely to get scrutinized by potential buyers. New countertops and appliances and sparkling fixtures will be a memorable aspect of your showings.
DO improve exterior features, too - first impressions count! Some of the most valuable work you can do is to add new siding, or to pressure clean or replace old dingy siding. Another outdoor biggie: decks. Most everyone loves relaxing outside, so adding or improving this amenity not only adds style to your lifestyle right now, but also increases your home's real and perceived value.
DO realize that the biggest return on your remodeling investment will come from more costly repairs, such as replacing windows or installing new air and heating units. If your home is in need of such improvements, it makes sense to do it now, before it costs more later.
Finally, DON'T turn your home into the neighborhood's priciest palace. You'll end up turning off potential buyers who will see other homes around the block offering more affordability. It's a delicate balance, but your home should offer the greatest value when compared with similar offerings.
www.MadisonVaRealEstate.com
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