What Real Estate Scams You Should Watch Out For After Buying Your Home

Real Estate Scams
You finally made the decision to buy your first home. You put in the time to find the right home and get financing from a mortgage company. As you are looking forward to your closing date, there are some people who would try to pull different real estate scams on you and turn your experience into a nightmare.

To protect yourself and your investment, here are some of the more common scams:
  • Emails requesting you wire transfer closing funds. These emails are almost always an attempt to scam you out of this money. Most closings require you to show up with a cashier’s check in hand.
  • An offer to purchase the home for more than what you paid. You may be contacted by someone who tells you they are very interested in buying the home and will pay you twice what you paid, as long as you prepay their closing costs today.
  • Calls or emails from bogus moving companies. These scammers want you to prepay for your move and entice you by offering low rates. Professional movers will never ask for payment until you are in your new home.
  • Emails requesting you prepay homeowners’ association (HOA) fees. Your HOA will not do this before the closing. Instead, they will mail you a letter or come talk to you directly once you move in.
If you are still looking for financing to buy your dream home, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!

The Pros & Cons of a 30-Year Fixed Home Loan

30 Year Fixed Home Loan
30-year fixed-rate mortgages are one of the most popular types of loans people get from mortgage lenders to purchase their homes. This type of loan has a fixed interest rate that never changes over the life of the loan. Even if rates go up over the 30-year period, the interest rate on your loan will not.

Other pros of 30-year fixed-rate mortgages include:
  • Monthly payments are the same, which makes budgeting easier.
  • The monthly payment is typically less compared to other mortgage loans.
  • It’s an ideal loan choice for home buyers who intend to stay in their home for 10 years or longer.
  • FHA 30-year fixed-rate mortgages could only require a 3% down payment
Even with these benefits, there are a few cons to 30-year fixed-rate mortgages you need to be aware of, as follows:
  • You may require private mortgage insurance.
  • You could pay more interest over the life of the loan, compared to a shorter fixed-rate-term loan.
  • The total costs of borrowing can be more if you only keep your home for 10 years or less.
  • It can take longer to build equity in the home, depending on the amount of your down payment.
To learn more about 30-year fixed-rate mortgages and other types of mortgage loans, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today! We offer a wide range of mortgage options to help you purchase your home.

Ten Signs Your Home Is Outdated and You Need a Cash-Out Refinance

Baby Boomer Kitchen with white tiles and oven
When you first moved into your home, you probably loved everything about it. After several years, various areas of the home will start to become outdated. Part of this is due to constantly changing trends in interior design. Another cause is simply that your home aged gracefully and is in need of an update. You know your home is outdated when:
  1. You have shag carpeting.
  2. You are still using the avocado green appliances your parents gave you.
  3. You have linoleum on your floors.
  4. Duct tape is your “go-to” repair tool.
  5. You have tiled countertops.
  6. You have wood paneling from the 1970s or early 80s.
  7. All of your faucets and light fixtures are gold.
  8. The paint on the walls is cracking, peeling, or yellowing.
  9. Your neighbors ask if you have applied for home historical preservation protection.
  10. Everyone refers to your home as “That ‘70s Show” house.
Giving your home a much-needed update and renovation is not costly when you consider different options for cash-out refinances, such as a home equity loan or cash-out mortgage. You can use the money to start with the things you can do on your own, like painting the walls and installing new flooring, then finish the updates with help from professional contractors. To learn more about cash-out refinancing options for your home, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!

Pros and Cons of Paying Off Your Mortgage Loan Early

discussion about paying off mortgage early
You should think about the term on your mortgage loan and whether it would be beneficial to pay it off early.

Pros of Early Payoff

  • Nearing Retirement: If you are nearing retirement, paying off your mortgage can bring peace of mind and extra cash flow during your retirement years.
  • Increased Disposal Income: If you want more money to use for other purposes, you can free up a big chunk by paying off your mortgage faster.
  • Access to 100% of the Equity in the Home: You can tap into the equity for home improvements and renovations. It is also easier to sell the home or convert it into a profit-making rental property.

Cons of Early Payoff

  • No Interest Tax Deduction: You will lose the interest tax deduction you can claim on your federal tax return.
  • Savings Shortages: You could be forced to cut how much you save or invest for retirement to pay off the loan faster.
  • Less Access to Cash: While you can get a loan against the equity in the home, it is not as fast or convenient as tapping into an emergency savings funds.
Most people tend to strike a balance between paying off their mortgages sooner and their other financial and cash needs. One way to do this is by refinancing your current loan for a shorter term or lower interest rate. To learn more about different options for paying off your mortgage faster, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!

How to Know if the Time Is Right for Mortgage Refinancing

Right for Mortgage Refinancing
You may have heard in the news recently that the Federal Reserve raised interest rates again. You may have also heard now is the time to consider mortgage refinancing before the rate increase affects home loans. How can you know if the right time to refinance is now? Let’s look at some key indicators you can use to help you decide:
  • Your credit score has improved. If you had so-so or good credit when you first obtained your mortgage, you could be paying a much higher rate of interest. Refinancing could bring the rate down, as well as lower your monthly payments.
  • The interest on your current mortgage is higher than current rates. Lowering your interest rate with a rate and term refinance will help you save money over the length of the mortgage.
  • You want to make home improvements. If you want to add on a room, finish your basement, or renovate your kitchen, a cash-out refinance could be a good choice.
  • You want to pay off high-interest You could save money in the long run by paying off high-interest debts with a cash-out refinance.
  • You have an adjustable rate mortgage (ARM). With an ARM, whenever rates increase, the interest rate on your loan also goes up. If you want to lock in a fixed rate, you should consider a rate and term refinance.