Homes may need new windows at some point. If you’re located in New England, certain times are better for outdoor repairs, particularly roofing, but windows, on the other hand, can be changed all year round. Whether you live in Connecticut, Rhode Island, or Maine, your home may need replacement windows at some point during its life span, and various local companies, if you check the phonebook, can assist you with adding a new set to your home. Replacement windows, however, come in wood and vinyl varieties, and one type might be better for your home than another.
A replacement window company should give you the option of adding either type to your home. For vinyl replacements, common brands are Harvey and, for the New England area, Paradigm. Vinyl windows allow for minimal carpentry in the installation process and may even use laminated glass, which is a sheet of clear plastic fused between two outer layers of glass. This protects the interior of the home against debris, in case the glass is shattered at some point. Wood windows, on the other hand, give you the option of many natural wood choices. While brands like Pella, Marvin, and Anderson are common for many replacement window companies, the wood for the window should match or compliment the wood used inside your home.
As far as choosing a replacement window company, a simple look in the phonebook or online can give you a full list of services for your area. Internet searches are recommended, especially as the company may have a website for you to view their full line of products. In this case, doing a search for your area, such as entering “replacement windows, CT” for towns in Connecticut, will give you a listing of companies – and their websites – for your area.
Companies for replacement windows in Connecticut, or those for areas in other nearby states, often concentrate on a few towns. For the New Haven area, for example, companies offering replacement windows and installation services may cover the entire county and towns in neighboring Hartford and Fairfield counties.
About the Author
Irene Test is a content writer for Keyword Performance, an SEO company located in Wallingford, CT. While the company has SEO services for local and national companies, she writes about a variety of topics, including fashion, tarps, background checks, outdoor decor, and safety gear.
While there are many different types of mortgages, one of the most popular is the Adjustable Rate Mortgage, also referred to as ARM. In this case, the amount of interest would fluctuate based on the current market. Because of this, the monthly mortgage payment would increase or decrease as interest rates change.
Understanding ARM Terminology
Index
The index is actually a lenders guide for measuring changes in interest rate. The most common types of indexes used are one, three, and five-year treasury securities, which are based on activity, although other indexes are also used. The type of index used would be directly connected to the specific ARM.
Margin
The margin is the amount of markup for the lender. For instance, this interest rate would symbolize cost for the lender to secure loans, in addition to the amount of profit the lender would make on each loan. To determine the homebuyers exact interest rate, the margin would be added to the index rate, which typically remains unchanged throughout the life of the loan.
Adjustment Period
In this case, the adjustment period is the amount of time between possible adjustments for interest charged on the ARM. When looking at Adjustable Rate Mortgages or ARMs, sometimes this type of loan is represented as a 1-1, 3-1, or 5-1, which mean specific things.
For instance, 1-1 is a reference to the initial period that the interest rate on the loan would remain unchanged, based on the rate set during home closing. The second reference is known as the adjustment period, which indicates the frequency of which adjustments could be made to the interest once the initial period concludes. A prime example would be annual adjustments for an ARM, meaning adjustments might occur annually.
ARM Indexes
Every lender uses a different type index for an ARM, something you would not know but what you can find out is the index the lender would use based on the type of loan you secure. Additionally, you could ask your lender about past index performance, helping you find an ARM connected to the index that has shown the most stability and for the longest amount of time. Therefore, as you consider a bank, mortgage company, or other mortgage lender, you need to look at the index, but also the margin rate offered.
Buy-Downs and Discounted Rates
Sometimes when buying a home, a seller will agree to pay fees for a buy-down, which means the lender would have the ability to offer an initial interest rate that falls below the total amount of index and margin combined. While not offered by everyone, some builders of new homes provide this incentive to sweeten the deal.
Remember, this rate will expire and if the loans interest rate were being adjusted upward at that time, the amount of the monthly mortgage payment could increase dramatically. Additionally, you want to be careful in that sellers will sometimes increase the asking price of the property just enough to cover the loan buy-down. In this case, the seller pays nothing but to the buyer, it appears as if a legitimate discount were being offered.
Interest Rate Cap
Many ARMs have a cap on interest rate so there are limitations to the amount of change, up or down. Caps are broken down into two categories, which include:
1. Periodic In this case, the interest rate could increase but only from one adjustment period to another adjustment period but some ARMs will not provide this type of interest rate cap.
2. Overall – With this type of cap, the amount of increase would also be limited but over the entire life of the loan, something enacted by law in 1987.
Payment Caps
This type of cap is associated directly with the monthly mortgage payment, which dictates the amount of increase during the adjustment period. Typically, if an ARM has a payment cap then a periodic rate cap would not exist.
Carryover
If the ARM has an interest rate cap that has kept the amount of interest down during the adjustment period, even if the index increased, this increase could be carried over to the next adjustment period, which could be beneficial to the buyer.
Negative Amortization
An amortization is the point where mortgage payments are substantial enough to pay due interest in addition to some of the loans principal. However, in the situation of a negative amortization mortgage payments would not be large enough to cover the interest. Therefore, the amount still owning would be added back onto the loan, which ultimately means the amount of debt specific to interest becomes greater. What happens with negative amortization is that even while making monthly payments on the loan, the balance actually increases.
With Changing Payments, is an ARM a Good Consideration?
The answer is yes for many people. With an ARM, what happens is that the initial interest rate would actually be lower than you would get with a Fixed Rate Mortgage or FRM, which is another mortgage loan in which the interest never changes. By securing a mortgage loan with lower interest, payments are lower and for some people, this could be the difference between qualifying or not, as well as the amount of loan.
Other Considerations for an ARM
http://www.flickr.com/photos/wwworks/
* You need to think about the amount of time you expect to own the home. In this case, if you will only own the property for five years or less, than any rate increase with an ARM would have little to no effect.
* You also need to determine if your income has potential for increase, which would make the slowly increasing house payments easier to pay.
* Keep in mind that often a person could have the ARM converted into an FRM. The consideration here is that the cost associated with the conversion might absorb any cost savings, therefore, not being worth the effort.
Remember, with an ARM or any type of mortgage loan, lenders are required by law to provide information to the borrower in writing. With this, borrowers can make the appropriate comparisons between lenders, loan types, and interest rate so they make the best possible decision. Of course, buyers should always ask questions to be sure they fully understand the various components of an ARM or any home loan.
Oliver Darraugh has been a Realtor for over 10 years. He writes widely about issues related to real estate and finance. He is currently studying the latest property developments in the UK and establishing online house buying companies to speed up the process of selling houses during this economic slowdown.
Certainly you have heard about the negative news recently about the real estate market and the surplus of foreclosed homes on the market. You may be thinking that right now is a great time to take advantage of the low interest rates and purchase one of those foreclosed homes. But the difficulty is that many of the foreclosed homes you have seen are in need of renovations and repair, you can’t live in them right now. You don’t have the cash to make these repairs and no lender will loan you money on a home you can’t live in. Well, there is good news and it comes in the form of the FHA 203K Rehab Loan.
The FHA 203k Rehab Loan is a loan for the purchase and renovation of a property, you can also use it to refinance a property you already own and renovate or improve it. The current state of the property doesn’t matter, only what condition the property will be in after the repairs have been made. So an FHA 203k Rehab Loan is a great loan obviously for foreclosures or bank owned homes being sold “as-is”.
Some points of interest on an FHA 203K FHA Rehab Loan Are:
You take out just one mortgage that covers both the purchase of the property and the cost of renovations, repairs and upgrades you make. The loan can be amortized over 30 years, making payments affordable for you.
Because the loan is an FHA loan you benefit from the low down payment required on FHA mortgage loans of just 3.5% of the total loan amount which based on the lesser of the purchase price and renovations or 110% of the after improved value of the home.
There are many different repairs and improvements you can use the loan for. What can you do? Structural alterations and additions, remodel kitchen or bathroom, install appliances, modernize plumbing/heating/air conditioning/electrical systems, roofing, flooring, painting, and energy conservation improvements. What repairs can you not do? Install a new tennis court, gazebo, or bathhouse, repair or make alterations that allow commercial use, outdoor fire pit or BBQ.
As you can see if you are considering buying a foreclosed or bank owned home that need repairs or want to make improvements to your own home, the FHA 203K Rehab Loan could be just what you are looking for.
The much-anticipated extension to the home buyer tax credit has finally been approved. The President signed the extension into law last month.
If you are looking to purchase your first home, you have been eligible for tax credits of up to $8,000 since last January as part of this year’s economic stimulus package. You will continue to be eligible in the “new and improved” program to be eligible for a tax credit of up to $8000. The big news is that the newly backed program will expand the credit to include existing home owners. One of the great successes of the original credit was the number of first time buyers who took advantage of the program, now hopefully this can encourage more than just first time buyers to act.
Under the revised program, those who have owned a home for at least five years will be eligible for tax credits of up to $6,500 when they purchase their next home. To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30, 2010.
Thanks to http://www.flickr.com/photos/chrisgriffith/ for the great photo
Here are some quick eligibility guidelines:
The maximum purchase price of the home must be less than $800,000 (not just the mortgage amount) and it must be the tax payers principle residence.
Home buyers must make less than $125,000 yearly for single tax payers and $225,000 yearly for joint filers.
For current home owners looking to purchase a new home, they must have occupied their current home for 5 of the past 8 years and they do not have to sell their current home to be eligible for the tax credit.
To determine if you are eligible for the tax credit you should seek the counsel of a qualified tax professional as you should be any tax questions. A great website on the tax credit can be found at http://www.federalhousingtaxcredit.com.
The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have been lobbying hard for the extension and expansion of the tax credit. NAR claims that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.
Do you know anyone in the armed forces currently serving outside the United States? In a nice move for military personnel serving outside of the United States the tax credit has been extended until June 30, 2011 for them.
Take advantage of the new and improved tax credit for both first time buyers and current home owners along with historically low interest rates. That combination makes today a great time to buy a home.
Although we have seen millions of homes go into foreclosure in the past two years, homes can be defaulted on in other ways. In fact, before the deadline, many of these homes will sell using what is known as a short sale, something that investors and homebuyers look for. In both the short sale and foreclosure, homes are sold for less than fair market value. In addition, sometimes some type of agreement can be made between a seller defaulting on the mortgage loan and the buyer, making it a win-win for both parties.
However, purchasing homes such as these come with risks so they need to be understood. For instance, when buying a home in distress, the buying process can be complex and sellers to have legal rights. Because of this, it is important for both parties to talk to an attorney prior to signing any contract.
Foreclosures Associated with Sellers
Unfortunately, when a seller is faced with the potential of having the home go into foreclosure, they often ignore the problem, somehow hoping it will just disappear. However, this only makes the situation worse, especially when help is available. Therefore, any seller in this situation needs to know his or her options instead of pretending no problem exists.
Some great publications that provide tremendous benefit include the following:
* How to Stop Foreclosure – With this, options such as forbearance, reinstatement, repayment, and modification plans can help the seller.
* Short Sales for Sellers – Sellers can learn the legal and appropriate means of transferring the title to the buyer but prior to the ending of the redemption period. This involves persuading the lender to take less money for the property than the unpaid balance. Obviously, some lenders are not interested in short sales but many are so it is imperative to learn what types of things lenders want and need from sellers. In this case, negotiation is vital.
* Foreclosure and Short Sale Taxes – It is also important to know the way in which the Internal Revenue Service handles foreclosures and short sales from a tax standpoint. Currently, there is a government system in place known as debt forgiveness so until the time comes that new rules are implemented, sellers might own taxes to the government even though money was lost on the sale of the property.
Tips for Buying a Home in Foreclosure or Short Sale
While many homes in foreclosure and short sale are profitable, some are not. For instance, if a home is going into foreclosure, for that process to stop, the buyer would have to pay all past due amounts on the mortgage loan to the lender. In addition, any imposed fees would also need to be paid in full. Then, the loan would have to be paid off or some kind of arrangements made so the property could be sold. Usually, taking on an existing financial obligation is not something lenders are interested in doing.
When Purchase of a Distresses Home Make Sense
To purchase a home in distress, three options would be considered. Keep in mind that for the state of California, a real estate agent cannot be represented.
1. Buying from the seller in a situation of foreclosure
2. Buying the property from the lender after a public auction was held
3. Negotiating the short sale with the lender
In the case of a short sale, all the details need to be understood but these are complicated and the time from offer to sell can be quite lengthy. Again, some short sales yield great profits while others do not.
Now, for a foreclosure, if the home were purchased before it ends up going to public auction, the process is also complicated and involves negotiations with the homeowner. In this scenario, a buyer could work with the seller or choose to place a bid once the home goes for sell in a public auction. However, learning about the process of a public auction is critical to success.
* Foreclosure Drawbacks – In this article, potential risks and possible percussions are commonly associated with buying a home going into foreclosure or being sold at public auction. Therefore, the buyer would have much better success by gaining as much information possible first.
* Defaults Hit Home Values – Unfortunately, homes not in default but located around a property that has gone into foreclosure are affected. With this, market value of the home in good-standing condition would decrease when a home is foreclosed on or sold in a short sale. With this article, buyers can learn how to identify the right neighborhoods, those that retain value according to qualified appraisers even when homes nearby have gone into default.
Foreclosure and Short Sale Repairs
One of the oldest strategies for making money in the real estate market is to buy property at a low price but then sell it for a much higher price. The best way to accomplish this is with buying property in disrepair and making needed changes, which can increase the amount of profit dramatically. Actually, homes defaulted on are commonly in disrepair so repairs and updates are required.
* Repairs Before Resale – This can increase profit but it is important to know that some repairs will yield great profit, up to 100% while some repairs will not warrant a return on investment.
* Top Do-it-Yourself Mistakes – In this article, sellers can learn the 10 most common mistakes made when buying a home to repair and sell for profit. Because this could be the difference in success and failure, it is reading highly recommended.
* Fix Up and Sell – This five-part series provides incredible links that will take readers to all of the other articles, providing descriptions of how to deal with repairs and upgrade products that range from simple to complex.
Understanding Foreclosure Types and Processes
The process associated with foreclosure involves a bank, mortgage company, or other lending institution that takes ownership back of a home of which defaulted by the owner. This means the monthly mortgage payments were not made for three to four consecutive months. This process is legal but the process must follow specific laws within the United Sates. Some of the questions that most people ask include the following:
What exactly is a foreclosure and what constitutes it?
First, a home or commercial building is purchased and the loan secured through a lender. This lender holds security interest in the property, which helps lower risk in case the owner decides to stop making payments for one reason or another. The loan or purchase agreement would have a specific clause that states if the home goes into default, the lender can take control back.
Depending on the lender or contract/agreement, some will also have an acceleration clause, again in case of default. In this case, the clause states the borrower may or may not still be responsible for the full amount of money in arrears. If a default happens, the lender sends notification to the homeowner or property owner, which outlines a certain amount of time in which the loan can be brought current, known as a redemption period.
At that time, the homeowner or property owner can bring the loan current, which would also include interest and penalties, arrangement something with the lender, or simply allow the home/property to choose bankruptcy proceedings. If the lender cannot get the owner to bring the loan current according to the deadline, the home or commercial property would be legally seized and then sold.
All proceeds from the sale would go toward the original mortgage loan first, second and/or third mortgage loan next, and then any other lien holders. If any money were left, it would go back to the homeowner or property owner. In some states, a personal judgment could be filed against the owner for any money still owed after the property has been sold.
Different Foreclosure Types
Different foreclosures exist, the one most commonly used, the judicial foreclosure. For this, the home or property is sold under control of court jurisdiction. Depending on the state, a power of sale could also be used in connection with a foreclosure, which means the mortgage company could sell the property without court involvement.
Foreclosure versus Deed in Lieu
Sometimes, the lender would accept the deed back for the property. However, both the buyer and seller need to negotiate and agree on the ownership transfer, as well as the fair market value.
Connection of Foreclosure and Business Bankruptcy
When a business goes through foreclosure, bankruptcy is not always linked but only if the owner is unable to make payments on another piece of property or another business. Even so, businesses having financial difficulty will often go through the bankruptcy process when payments cannot be made.
With Chapter 11 being filed, foreclosure on the business would be stopped to allow time for the court to approve a plan to reorganize. In the case of chapter 7, this is when everything is liquidated, including the business structure. Keep in mind that just because a business owner declares bankruptcy, it does not automatically mean the business property would come out unscathed. Sometimes, the structure will be sold to help pay off outstanding debt associated with the company.
Ways of Avoiding Foreclosure
The answer to this question is yes that often, foreclosure can be prevented and even stopped once the process has begun. For every case, a financial advisor or bankruptcy attorney should be consulted so the right course of action can be identified. Some of the recommendations these professionals often make include:
* Refinancing – The business owner might need to refinance the loan through the original lender or another lender
* Financial Support Close to Home – Another option would be to come up with the money needed, which might come from family members or friends, or perhaps from an investor.
* Personal Guarantee – Most often, the business owner would be advised to personally, guarantee the loan, which would exclude personal belongings/assets from risk of bankruptcy. Even so, the relief may only be temporary so refinancing at a later day or removing the guarantee would be possible.
* Restraining Order – This type of court order would halt the foreclosure temporarily but this would depend on the purchase agreement terms
* Bankruptcy – Generally, bankruptcy is the last resort in trying to save the business, which may or may not stop the foreclosure on a temporary basis so the court has ample time to work through all the legal proceedings.
Oliver Darraugh has been a realtor for over 10 years. He writes widely about issues related to real estate and finance. His interests are currently focused on the UK foreclosure market and has recently built an online portal on how to sell your house quicklyin the UK.
