1205 W. Abram Street Suite 100
Arlington, Texas 76013

Office: 817-860-3232

LegacyCare™

Your All-Inclusive
Real Estate Benefit Plan

Proven Insider Tips Which Save You Money on Home Ownership and Financing- Whether You Own Now or Not!

Tip #1: Get Pre-approved for Your Loan

Pre-approval gives you the buying power of a "cash buyer". It has been estimated that the buying power of a cash buyer can save you as much as 3-5% when negotiating a contract!!

Pre-approval gives you a significant amount of "peace of mind" in knowing that you are fully approved for your purchase price range.

Pre-approval avoids you wasting time looking at properties which are either above or below your approved mortgage range amount.

Sellers will take your offer more seriously than a non-approved buyer.

 

Tip #2: Consider Re-financing

Refinancing can provide a niche financial benefit:

Example #1:

1) You have multiple children in college

2) You have debt other than your home debt and your home has increased in value

A real-life example was a  home equity loan we did for a client:

> They had credit card debt of $20,000; with a 1.5% minimum payment, or $300

> They had a car loan of $15,000; regular monthly payment was $470

> They had a 7% home loan balance of $85,000; the market value of the home was $155,000 (Principal & Interest only); regular monthly payment was $565

 =Total payments (excluding escrows) per month was $1335

We put them in a new loan with an interest rate of 6.5% for $124,000 (Principal & Interest only); monthly payment of $784.  They paid off their $20,000 in credit card debt and their car loan of $15,000, leaving them with $89,000 to pay off their previous mortgage balance of $85,000.

This resulted in $551 savings per month from their previous scenario!Additionally, if you add in the tax benefits of refinancing - during the early years of the loan most of the $784 is tax deductible (the interest portion).

If you assume a 28% tax bracket: $784 x 28%= $219; $784 - $219=

The after tax cost of the monthly payment is: $564!

 

Example #2:

          Get an "Annual Mortgage Fitness Check Up" to make sure you are still in the best loan program to maximize your unique financial needs.

          Invest 15 minutes of your time to see if a refinance gives you financial benefits or not.  LegacyCare offers a free consultation to accomplish your goals.

 

Tip #3: Rent vs. Own

If you are thinking of buying a home, take some time to seriously consider the pros and cons of home ownership.

Questions to ask yourself are:

Do I really want to own a home?
Can I afford to buy a home?
How much money do I need to bring to closing?


If You Rent:

Advantages:

Little initial investment when moving in

Little to no responsibility for maintenance or repairs

Not committed to staying in one place for an extended period of time

Can move quickly

Disadvantages:

No tax or special financial benefit

No investment in or from the property

No equity build-up

"Nothing to show" for your money

Fluctuations (increases) in rent payments

Possibility of eviction

Inattentive landlord

Paying someone else’s mortgage instead of your own

If You Own:

Advantages:

Build equity

One of the best long-term investments in today’s marketplace – plus you can live in it!

Pay your own mortgage – not your landlord’s

Tax advantages – 25%-30% of mortgage

Build stronger credit history when timely payments are made

Stable monthly payments with a fixed rate

Strong sense of community involvement

Place for family and relatives to live or visit

Greater individuality, independence and privacy

Increased sense of stability and security

Fulfill the "American dream"

If You Own:

Disadvantages:

Responsibility for maintenance and repairs

Property taxes and insurance

Less mobility (i.e. "Can’t move quickly")

Long-term financial commitment

Cash is tied up into home’s equity

Usually have to sell before moving

House can lose value if not properly maintained

Possibility of foreclosure and loss of all equity

 

Tip #4: You Don’t Need As Much Cash As You Think…

Down payment assistance programs - there are many

100% financing programs

Combination 1st and 2nd liens

Possible forgivable grants for down payment assistance

Possible extended ratios to allow you more purchasing power

Possible extended loan programs and better rates to give you more purchasing power

 

 

Tip #5: Understanding the Homebuying Process

A home provides us with one of the basic necessities of life – shelter. The type of shelter we have affects the quality of our daily lives.

But, the home buying process can be confusing and intimidating.

We are here to educate you how a home purchase can be to lessen the mystery!

 

Tip #6: Mortgage Insurance

*Protects the lender if the borrower defaults

*It is NOT life insurance

*It is NOT homeowner’s insurance

*It is not tax deductible

*MI may entice a lender to make a higher loan to value loan

*It is a waste of your hard-earned wages

Example:

A 7% loan on $102,000 loan balance (Principal & Interest only) - monthly payment of $705

Had Mortgage Insurance  at $60 per month

Total payment (excluding escrows) was $765

Their property had increased in value from $108,000 to $122,000

We put them in a $97,600 1st lien loan at 6.5% (P&I); monthly payment of $616

We put them in a $4,400 2nd lien loan at 7.5% (P&I); monthly payment of $40

Total new payments (excluding escrows) was $656

Total savings per month: $109!

For more information on your home loan, please contact a LegacyCare loan consultant at 817-860-3232 or you may email us at Joylynn.Bates@myccmortgage.com.

Traffic