Mortgage Madness: What you need to know right now

NORFOLK, VA, Dec 10, 2013—Weeding through all of the available information on mortgage rates can be exhausting. From trends to current percentage fluctuations, there is always a surplus of information at your fingertips. Below are three things you should know about today's mortgage arena, provided by Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty.

They're on the way up – but still look good. Today's rates are higher than they were a year ago, but they're still relatively low. Recently, mortgage rates were weighing in around 4 percent, which isn't as low as 2012's 3 percent, but is still a great rate.

They shouldn't stop you from buying. If you're waiting to purchase a home because you think mortgage rates may drop – don't. While mortgage rates do increase and decrease slightly from month-to-month, larger changes happen extremely slowly. “If a fraction of a percent increase or decrease dramatically changes how much house you can buy, then you may be shopping a bit out of your price range,” explains Eisenberg.

There could be upcoming changes. The Federal Reserve has been keeping interest rates low by purchasing billions of dollars' worth of mortgage-backed securities every month, called Quantitative Easing. The Fed admits that this program may not be around much longer, and that when it is eliminated, mortgage rates will spike. “This is only a speculation, but it is still something to keep in mind if you're deciding on the right time to buy,” Eisenberg notes.
For more real estate information, please contact Louis Eisenberg, Associate Broker, Realtor, Prudential Towne Realty, 109 E. Main Street Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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Home Improvement: Financing Your Project and Mechanic's Liens

NORFOLK, VA, Dec 02, 2013—If you're currently looking to remodel your home but aren't sure how to finance it, you're in luck. There are many ways to finance a remodeling project, explains Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty. If you have equity in your home, a good credit rating, and steady income, you can refinance your mortgage and borrow a percentage of the equity to cover remodeling costs. “Refinancing is a good option if you can get a mortgage interest rate at least two percentage points below your current home loan rate,” says Eisenberg. Other options include a second mortgage, a home equity loan, or an unsecured loan. Less popular options: margin loans, which are taken against securities you own; and loans from retirement plans, life insurance policies and credit cards. Remember that if you're hiring contractors for work, you need to be able to pay them. “If for any reason you can't, they can take out a mechanic's lien – a “hold” against your property that provides contractors and suppliers legal recourse to assure payment for services,” notes Eisenberg. The liens vary from state to state and allow for a cloud on the title of your property and foreclosure action. Also, if you paid the contractor, but he failed to pay the subcontractors and laborers – who do not have a contract with you – then the workers may file a mechanic's lien on your home. “This could result in a double payment by you for the same job,” explains Eisenberg. “You can protect yourself from unwarranted liens by selecting your contractor carefully and managing your construction project responsibly. “Also, most construction lenders will specify a payment distribution process that involves the securing of lien waivers,” Eisenberg continues. The remodeling contract should address this as well, assuring that the general contractor is responsible for all payments as well as any costs required to remedy lien disputes that may arise. For more information on refinancing, please contact Louis Eisenberg, REALTOR, ABR, SFR, Associate Broker, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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Home Maintenance for the New Home Owner

NORFOLK, VA, Nov 25, 2013—Becoming a homeowner for the first time is one of the most fulfilling moments you may ever experience. Owning a home offers a myriad of benefits. However, it can also be costly, especially when you factor in maintenance and repairs over the lifetime of your home. To help reduce stress and costs, Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty offers several tips for keeping up with home maintenance. “From the day you move in to the day you sell your home, there will always be something that will need to be repaired or remodeled,” says Eisenberg. Some changes will be simple; you may want to undertake certain updates simply to elevate your comfort level – like installing central air conditioning – or spruce up the home’s aesthetics, such as adding a few stained-glass windows. “Others will be more critical, like replacing a hazardous roof, fixing broken windows, and repairing leaky pipes,” says Eisenberg. These are all necessities. Left undone, they can lead to major problems and damages within the home. One of the top ways, according to Eisenberg, to keep up with your home is to take inventory. “From the very beginning, get in the habit of taking an inventory at least once a year of every nook and cranny in your home to check for potential problems,” says Eisenberg. “Examine the roof, foundation, plumbing, electrical wiring – basically everything. Try to fix trouble spots as soon as you uncover them. This proactive approach will help you avoid larger expenses later on, so leave no stone unturned when taking your inventory.” In terms of preparing for expenses, you can expect to spend an average of one percent of the purchase price of your home every year to handle a myriad of tasks, including painting, tree trimming, repairing gutters, caulking windows, and routine system repairs and maintenance. “An older home will usually require more maintenance, although a lot will depend on how well it has been maintained over the years,” notes Eisenberg. Tell yourself that the upkeep of your home is mandatory, and budget accordingly. Otherwise, your home’s value will suffer if you allow it to fall into a state of disrepair. It can be helpful to adopt the attitude that the cost of good home maintenance is usually minor compared to what it will cost to remedy a situation that you allowed to get out of hand. For example, unclogging and sealing gutters may cost a few hundred dollars, but repairing damage to a corner of your home where gutters have leaked can potentially cost several thousand dollars. “Remember, there is usually a direct link between a property’s condition and its market value: The better its condition, the more a buyer will likely pay for it down the road,” says Eisenberg. For more information on keeping up with your home, please contact Louis Eisenberg ABR, SFR, Realtor, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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