All Forum Posts by: Ralph DiBugnara

@Mindy Jensen Whichever is easier for the tenant.

-Save extra money

-Take advantage of low to zero down mortgages

-Make use of your retirement plan

-Find a roommate

-Cut back on non-essentials

Which one(s) have you implemented?

Is the maintenance of your home going over your budget? Have the kids all left for college and the home is too big for you? Or do you want to move out of the suburbs to the city? If any of these situations resonate with you, then downsizing can be an option for you.

. The benefits of downsizing are:

1. Saving Money - Moving into a smaller home typically means having a lower monthly payment and lower utility, insurance, and maintenance costs. This would leave more money in your pocket for potential savings, investments, renovations, etc.
2. Lower Maintenance - downsizing typically reduces the amount of labor required to maintain the home because there is less area available to clean. This is especially the case if you downsize from a house to a condo or townhouse because, not only would the space be smaller, but because HOA's tend to take care of exterior care.
3. Preferred lifestyle - Sometimes, living in a very desired area of town means getting a smaller home that can accommodate you and your preferred lifestyle.

A bigger house is not always the best option for some people and if you feel as though you have too much house to handle or the monthly payments don’t make sense anymore, then consider downsizing into a home that you feel comfortable in.

Down payments aren’t the only thing you need to save for when buying a home. Closing costs can be thousands of dollars, and you may need to foot the bill for inspections, home repairs, or even fun things, like new furniture. To make the home-buying process less stressful, it’s a good idea to keep a few months of reverses of your proposed mortgage payments.

How much money do you think is a safe amount to have before closing on a home?

One of the measures of risk that lenders use in underwriting a mortgage is the loan-to-value (LTV) ratio. LTV divides the amount of the loan by the value of the home. Most mortgages with an LTV ratio greater than 80% require that the borrower have PMI.

PMI can cost between 0.5% and 1% of the entire mortgage loan amount annually, which can raise a mortgage payment by quite a bit. Let's say, for example, that you had a 1% PMI fee on a $200,000 loan. That fee would add approximately $2,000 a year, or $166 each month, to the cost of your mortgage.

The biggest advantage of an adjustable-rate mortgage (ARM) is that it is considerably cheaper than a fixed-rate mortgage, at least for the first three, five, or seven years. ARMs are also attractive because their low initial payments often enable the borrower to qualify for a larger loan and, in a falling-interest-rate environment, allow the borrower to enjoy lower interest rates (and lower payments) without the need to refinance the mortgage.

• Whether you're getting ready to buy your first home or you've done this before, you'll benefit from discovering the best time to lock in a mortgage rate. Understanding how it works and what it's for can help make the home buying process a little easier.
• You can choose to lock in your mortgage rate from the moment you select a mortgage, up to five days before closing. Locking in early can help you get what you were budgeting for from the start. As long as you close before your rate lock expires, any increase in rates won't affect you.

Not in Philly but in North Carolina, Miami, and New Jersey.

Hey @Kevin Hoodwin, it would be a great idea. Have you considered different types of rentals, airbnb and vrbo for example?

An inspection is conducted by a licensed inspection professional, who will analyze features of the house such as electrical wiring, plumbing, roofing, insulation, as well as structural features of the home. The purpose of the inspection is to unveil issues that are not noticeable to the buyer’s eye. The property should be inspected for radon which is a radioactive gaseous element that occurs naturally, especially in areas over granite, and is considered hazardous to health.

Bonus Term
Inspection Contingency- a clause stating that the buyer can cancel the contract with no penalties if the property needs major repairs.