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For the majority of people, owning a house is the self-actualization of their American dream. For others, it can be their worst nightmare. Buying a house/real estate, is one of the major financial decisions a person will make in their entire life. Therefore, it is important to carefully think about their decision before they decide to buy a home. The pros and cons of the matter should be considered:

When a person is considering buying a home, there are many factors that they have to consider. Do they really need a house right now? Will their income grow with time or not? Will that purchase be beneficial in the long-term? Do they have any money saved? Are they even ready for that responsibility? Buying a house can be one of the biggest financial moves a person can take. The information given below will help a person examine the pro and cons of having a house based on their personal desires, plans for the future and current financial position.

 

Considerations about owning your own home

Remember, a home is not, in general, a good short-term investment. Consider buying a home if you think you can live in it for a few years or more.

Before buying, it is important that you analyze what the effect of this great purchase will be on your financial situation and lifestyle. These are some points to keep in mind before making a decision.

Advantages

  • You may be able to deduct the annual mortgage interest and property taxes from your tax return.
  • Over time, you will liquidate a greater amount of capital.
  • You may be able to apply for a loan on the value of your home to make improvements at home or consolidate debts with a loan on the net value of the home.
  • You risk perceiving a profit from the sale of your home if the value increases significantly.
  • You may be able to exclude the proceeds from the sale of the home from your taxable income if you meet certain requirements of the IRS. An accountant specialized in tax matters can advise you.

Disadvantages

  • Unless the value of the home increases rapidly during the first few years of your mortgage, you may lose money if you sell it too soon.
  • You will pay more property taxes if you increase the value of your home.
  • You will lose money if you sell your home at a time when your value is low. Before buying, be sure to consider factors such as schools and similar housing in the area, as well as the real estate market. In this way, you can predict if the value of a potential home could be depreciated.
  • The costs of buying your home may increase if you include the real estate agent’s commission, points, loan preparation and other closing costs.
  • Your costs increase immediately after the closing of your mortgage. Make sure you have a financial plan that includes your moving costs, renovations and the purchase of new furniture. In these expenses, most homebuyers incur as soon as the mortgage process is completed.
  • You will be responsible for home improvements and home maintenance, such as repairing or replacing large appliances, air conditioning and heating, and roofing, as well as lawn care.
  • If you have a large apartment with an affordable rent, it can be difficult to become a homeowner with similar costs. The purchase of the apartment also implies the impossibility of collecting all the belongings and easily leaving before a change of employment or another circumstance of life.

Remember that you need to be willing to analyze these advantages and disadvantages, and work to reach an informed decision. Still cannot decide? In that case, perhaps the best advice is to wait a bit before making a purchase decision as opposed to running away looking for that option that you might regret later.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.
Refinancing - Complete Controller

Are you seeking ways to lower your monthly home mortgage payments, turn your real estate equity into a monetary asset, obtain a reduced interest rate, or switch to a full fixed-rate debt? If any of these situations define you, it is a good idea to consider refinancing your home mortgage loan.

However, before you refinance, it is imperative to comprehend how it performs and assess the advantages and disadvantages of your specific circumstances. For instance, the documentation requirements to obtain approval and the lack of awareness regarding refinancing options are the things that surprise many homeowners. Check out America's Best Bookkeepers

Consequently, knowing the fundamentals of home refinancing and how it helps achieve your financial goals will undoubtedly assist you in determining what mortgage option will be more beneficial for your situation.

What Is Refinancing?

Typically, refinancing is defined as the process of substituting a present mortgage with new debt. Individuals refinance their mortgage usually to lower their monthly payments, reduce their interest charges, or eventually alter their entire debt program from an adjustable-rate house loan to fixed-rate debt. Some homeowners require easy access to their money to pay off different loans or finance house renovation projects and take advantage of the equity from their home to get a cash-out to refinance.

Irrespective of financial goals, the eventual refinancing method works largely in a similar manner as when one applies for their initial mortgage. Therefore, you will have to set aside some time to do the necessary research on your mortgage options, gather the right financial and other essential documents, and promptly send a house mortgage refinancing application to get the approval. Check out America's Best Bookkeepers

Advantages of Refinancing

There are plenty of potential benefits to refinancing your home mortgage, which is included below:

  • Reduce monthly payments: Studies suggest that refinancing may enable an average property owner to save about $160 or more per month. Lower monthly payments allow you to use the savings freely towards other expenditures and loans or the monthly mortgage payments to pay off the loan sooner.
  • Lower the time-period of debt: A thirty-year mortgage may be the most sensible financial decision for property owners who took a housing debt in the initial stages of their professional life. However, lowering the mortgage term can be a good choice for those who aim to pay off their debt sooner.
  • Retire home mortgage insurance: For homeowners who hold enough principal paid off or property, appreciation will not be necessary to bear mortgage insurance that will lower their overall monthly payment. Check out America's Best Bookkeepers
  • Reduce interest charges: Refinancing to a reduced fixed interest rate can certainly decrease your monthly debt payment amount.
  • Switching from a previous adjustable-rate mortgage to a new fixed-rate mortgage: When you have an adjustable-rate house loan, you can adjust your payment up or down with interest rates. Switching towards a fixed-rate mortgage with regular and reliable monthly payments can render property owners the sense of realization that their payments won’t change.
  • Utilizing the equity available in your house to obtain a cash-out refinance debt: You may have enough capital, with rising house values, to get a cash-out to refinance loan that you can use to finance your home improvements, fund large purchases, or pay off loans.
  • Consolidating your initial mortgage and your credit’s home equity line: You can easily simplify your finances and focus on one mortgage by rolling your credit’s home equity line into just one monthly payment.

If you hold a debt backed by the VA, USDA, or FHA, you can benefit from several streamlined refinance programs. Such programs offer a well-simplified approval process by eliminating or lowering several of the credit, income, or appraisal reviews, all included in universal refinance programs. It is imperative to mention here that streamlined refinance mortgages may not offer the ability to cash-out. Also, such mortgages may increase your total cost, like any other refinancing options, over the term of the debt. Even when you have not been able to refinance, mortgage programs and interest rates are always changing. Taking expert advice is beneficial in these matters.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers