To most people, the home buying process can seem like a complicated and confusing process Even though it seems like a daunting task can be made much easier if you take things step-by-step, you will soon be holding the keys to your own home! But before going into the process of buying that home, you really need to honestly ask yourself if you are honestly ready to buy a home in the first place! Think about this.
Do you enjoy or even prefer moving into different places or areas of the country? Do you prefer to use your money for things like vacations, appliances, retirement or having your own business? Do you dislike doing typical household maintenance, repair and handyman work around the home?
If you answered yes to these questions, you may not be ready to delve into the home buying experience. You may think you have a lot of good reasons for buying a home. but it's very important that you should also consider your reasons for not wanting to become a homeowner!
Remember that buying a home isn't just the biggest financial decision you'll probably ever make but it can also be the most nerve wracking emotional choice in your life! So be prepared to make wise decisions and be willing to logically and unemotionally think out the entire process before you buy. Basically, look before you leap!
In today's hot real estate market, buying a home always seems to be a great idea, but it's important to completely understand that homeownership also comes with a great deal of responsibility too! Of course, being a homeowner is something to be proud of, but it also means having to invest heart earned money, time, energy and financial resources. So you have to really be sure this is right for you.
Typically the first thing that comes to mind when we dream of homeownership, are the wonderful things that are connected to it, which are great reasons for buying a home. Here are some of the tremendous advantages for buying a home:
Yes, it's really nice to think about the positive aspects of owning a home, it is also a crucial part to consider the downsides as well. Here are some of the disadvantages on home buying.
Financial Stress
Probably the most common feeling in the home buying process. Coming up with the down payment, meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances. So it's very important that you carefully manage your budget and finances to make sure that you can meet all of your obligations. Many new homeowners get a shock in their first year of owning a home. Proper planning and preparation can help you avoid this.
Maintenance Costs
Unlike renting where a landlord may take care of the maintenance, when you're a homeowner you are solely responsible for keeping your home in good working order. Keeping a home operational and looking good requires time and money. Once again, it's important that new homeowners carefully monitor their finances and also carefully keep an eye on small maintenance issues and work on them before they become huge repairs.
Higher Monthly Payments:
It's entirely possible that you will pay more each month for your home payment that you ever did as a renter. You not only have to pay the mortgage, you pay taxes, you pay utilities, you pay expenses, you pay for maintenance, everything. And when you add that up it can be shocking at how much that can be. Yes, in today's tax code there are benefits that come from homeownership that can defer some of that expense, but you still have to pay it first!
Still think you want to buy a home? GOOD! If you feel that now is the time and homeownership is right for you, you need to make sure that you are truly financially ready to do so.
To avoid any future surprises, you can do some financial planning to see where you stand, including: calculating your net worth, determining your current monthly expenses and your current monthly debt payments.
Gathering this detailed information and knowing things like your net worth is important because you'll need this information when you discuss financing with your mortgage lender. Going through this exercise will give you a snapshot of where you stand financially and show you how much you can afford to invest as your down payment on the home purchase. You do not want to rush this process since finding the best type of financing for your particular situation will determine how much you will be paying every month.
Also be sure to work with a trustworthy and professional real estate professional. In today's market there are real estate agents and Realtors that work specifically in representing buyers. These professionals will help you in everything from finding the right home for you, to helping you understand the contracts and paperwork, to negotiating the deal for you, and representing your interests in the buying process. They can even help direct you to good financing sources and be a "one stop shop" to help you in every step of the way to find your home and get you in it with the least amount of stress.
After you've found your dream home, and contracts have been accepted and your financing is in place you're ready for closing day when you finally settle the transaction and become the proud, legal owner of a home that you can call your own.
Although this is a GREAT day, it's also very confusing and full of papers flying around and being signed. Your closing attorney or title company will handle all of the details of the closing including making sure the money is in place from your mortgage company, make sure that tax bills are paid, any outstanding debts resolved, takes care of the seller's paperwork. Bottom line, they make sure that all the T's are crossed and I's are dotted so that when you leave you'll have a deed which calls YOU the owner of that property!
When all the dust settles, you'll be handed the keys and you'll be able to walk into a home that you can call your own! Enjoy the moment and congratulations on becoming a homeowner!
About the Author
Bob Gatchel is a noted real estate investment consultant and Realtor in the Delaware / Maryland regional area. He provides a wide range of programs to help home sellers, home buyers & real estate investors. To learn more about his services & free reports plus learn about his exclusive 10 Step VIP Home Seller Program, visit http://www.BobGatchel.com. This article can be freely reproduced if this resource box & active link to authors's site are intact.
Tuesday, February 21, 2006
Take Out a Home Loan and Get Rid of Your Rented House by Vipul Jain
Housing is one of the basic human needs. Everyone needs a house to get protection from the nature and the outside world. You can either live in a rented house or your own house. There are far too many problems in a rented house. There always arise conflicts between landlords and tenants. Your landlord may ask you to pack your bags and leave the house. You will have to search for a new rented house in such a situation. The monthly rentals that you pay go down the drain because you do not own the house even after living in it for a very long time.
You can get rid of all these problems if you buy your own house. It has been estimated that 70% of Britons own their own house. According to a survey, more than half of young Britons wish to own a house when they are 25 to 30 years old. Buying a house requires a huge cash outflow. You cannot pay a lump sum amount to buy a house unless you work for a number of years and save for it. A better option is to take out a home loan.
There are many lenders who grant 100% the house price so that you do not have to pay anything from your pocket. You will be required to repay the loan in the form of affordable monthly installments. The loan repayment is spread over a long period so that the amount of monthly installments becomes small. A home loan is secured against the house that you are buying. If you fail to repay the loan, the lender will have the option to repossess the house. The amount of money that you will have repaid will be forfeited by the lender.
A second home can also be bought using a home loan. You can take out a second home loan against the second home or your primary residence. Buying a house on a home loan is a good investment opportunity. The appreciation in the value of your house is much more than the interest that you pay on a home loan.
For more information please visit:http://www.adverse-credit-home-loans.co.uk
About the Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting adverse-credit-home-loans as a finance specialist.
You can get rid of all these problems if you buy your own house. It has been estimated that 70% of Britons own their own house. According to a survey, more than half of young Britons wish to own a house when they are 25 to 30 years old. Buying a house requires a huge cash outflow. You cannot pay a lump sum amount to buy a house unless you work for a number of years and save for it. A better option is to take out a home loan.
There are many lenders who grant 100% the house price so that you do not have to pay anything from your pocket. You will be required to repay the loan in the form of affordable monthly installments. The loan repayment is spread over a long period so that the amount of monthly installments becomes small. A home loan is secured against the house that you are buying. If you fail to repay the loan, the lender will have the option to repossess the house. The amount of money that you will have repaid will be forfeited by the lender.
A second home can also be bought using a home loan. You can take out a second home loan against the second home or your primary residence. Buying a house on a home loan is a good investment opportunity. The appreciation in the value of your house is much more than the interest that you pay on a home loan.
For more information please visit:http://www.adverse-credit-home-loans.co.uk
About the Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting adverse-credit-home-loans as a finance specialist.
Deciding Whether to Invest in Rental Property by John Mussi
Finding the right place to invest your money can be difficult... there are so many investment opportunities that create a great return and generate a large profit, but there are even more that end up with very little if any return and minimal profits or possibly even losses. For the careful investor, real estate can generate a much larger return than some other investments, especially if the property purchased is used as a rental property.
Not everyone is cut out to be a landlord, however, and care must be taken to make sure that you're not getting into something that will only lead to problems down the road.
To help you to make the decision as to whether or not you should purchase rental property, here are some of the pros and cons of buying property for rental purposes.
Advantages of Owning Rental Property
Rental property can be a great way to make money, especially if the property is well taken care of and lies in a good location. If the property is low-maintenance, then the majority of the money that is paid in rent will likely be a profit for you the profit being determined after all property taxes and other costs are paid. As long as the rental property is occupied, you should continue bringing in money... and if the location of the rental property was well chosen and is in a popular area, then you shouldn't have very much trouble keeping the property occupied.
Depending upon where the property is located and the individuals that you rent the property to, you may also be eligible for government programs or tax deductions for opening your rental housing to low-income or special needs families.
Should your rental property begin to perform below your expectations in regards to rent, you also will still have the option to sell the property just as you would any other real estate though there may be some legal restrictions if the property is occupied at the time.
Disadvantages of Owning Rental Property Just as there are several advantages to owning rental property, there are also several disadvantages that you should be aware of. Since you are the owner of the property, you are responsible for all taxes and costs associated with owning the property... and these are due whether you've made a profit from the property or not. You are also responsible for maintaining the property in a livable condition, and some of the repairs that may arise in meeting this responsibility (such as repairs to electrical systems or cleaning up of health issues) can be quite costly.
Additionally, the income potential of rental property is based on the assumption that the tenants will pay their rent on time... some tenants are constantly late with their payments, or may decide to withhold payment altogether and force you to evict them.
Landlord/tenant conflicts can sometimes even become legal matters that can become bogged down in court and cost more than the issue that started the conflict in the first place.
Of course, not all tenants will be bad... nor will all of them be good. The advantages and disadvantages listed above are intended to show you the potential for both good and bad experiences that exist when investing in rental property. Consider both carefully so as to better make your decision and to help choose your investments wisely.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Not everyone is cut out to be a landlord, however, and care must be taken to make sure that you're not getting into something that will only lead to problems down the road.
To help you to make the decision as to whether or not you should purchase rental property, here are some of the pros and cons of buying property for rental purposes.
Advantages of Owning Rental Property
Rental property can be a great way to make money, especially if the property is well taken care of and lies in a good location. If the property is low-maintenance, then the majority of the money that is paid in rent will likely be a profit for you the profit being determined after all property taxes and other costs are paid. As long as the rental property is occupied, you should continue bringing in money... and if the location of the rental property was well chosen and is in a popular area, then you shouldn't have very much trouble keeping the property occupied.
Depending upon where the property is located and the individuals that you rent the property to, you may also be eligible for government programs or tax deductions for opening your rental housing to low-income or special needs families.
Should your rental property begin to perform below your expectations in regards to rent, you also will still have the option to sell the property just as you would any other real estate though there may be some legal restrictions if the property is occupied at the time.
Disadvantages of Owning Rental Property Just as there are several advantages to owning rental property, there are also several disadvantages that you should be aware of. Since you are the owner of the property, you are responsible for all taxes and costs associated with owning the property... and these are due whether you've made a profit from the property or not. You are also responsible for maintaining the property in a livable condition, and some of the repairs that may arise in meeting this responsibility (such as repairs to electrical systems or cleaning up of health issues) can be quite costly.
Additionally, the income potential of rental property is based on the assumption that the tenants will pay their rent on time... some tenants are constantly late with their payments, or may decide to withhold payment altogether and force you to evict them.
Landlord/tenant conflicts can sometimes even become legal matters that can become bogged down in court and cost more than the issue that started the conflict in the first place.
Of course, not all tenants will be bad... nor will all of them be good. The advantages and disadvantages listed above are intended to show you the potential for both good and bad experiences that exist when investing in rental property. Consider both carefully so as to better make your decision and to help choose your investments wisely.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Buying vs renting property - which is better? by itrealtor
Buying vs renting property - which is better? Looking for property in Singapore? Still deep in thoughts about whether buying or renting is the better option? Here are some points that you could consider in your decision-making process. Hopefully, it will help you will to select the option that is suitable to your needs.
Do you have sufficient initial capital?
When you make a property purchase, your initial capital outlay is 10% (out of which 5% can be from your CPF and the remaining 5% is to be in cash). For renting purposes, you would typically be looking at somewhere between 1 to 3 months rental value for the security deposit (depending on lease terms and the landlord's requirements).
Tax and depreciation shelter
Property buyers enjoy tax and depreciation shelter whereas tenants do not. If a loan was taken up for the purchase, the interest component (being an expense item) reduces the taxable income.
Looking at it from an investment point of view
It has been well documented that there is strong correlation between real estate growth and the country's economy. If the GDP is expected to rise significantly in the mid to long term, it would be quite likely that home prices follow suit and this will give home buyers potential on getting good returns for their investments whereas tenants do not enjoy any returns on the rental paid out.
Using real estate as a inflation-hedging tool
Real estate has often been used as a hedge against inflation - the effects are transferred onto the tenants through rental increments. Inflation will work against the tenants when the market rises, landlords will increase rents during lease renewals and this becomes additional cost to the tenants.
About the Author
www.itrealtor.com is a Singapore property portal for real estate agents and home owners to post property listings for sale or rent in Singapore.
Information available for use by all without copyright but kindly provide link back to http://www.itrealtor.com/toolstips.php
Do you have sufficient initial capital?
When you make a property purchase, your initial capital outlay is 10% (out of which 5% can be from your CPF and the remaining 5% is to be in cash). For renting purposes, you would typically be looking at somewhere between 1 to 3 months rental value for the security deposit (depending on lease terms and the landlord's requirements).
Tax and depreciation shelter
Property buyers enjoy tax and depreciation shelter whereas tenants do not. If a loan was taken up for the purchase, the interest component (being an expense item) reduces the taxable income.
Looking at it from an investment point of view
It has been well documented that there is strong correlation between real estate growth and the country's economy. If the GDP is expected to rise significantly in the mid to long term, it would be quite likely that home prices follow suit and this will give home buyers potential on getting good returns for their investments whereas tenants do not enjoy any returns on the rental paid out.
Using real estate as a inflation-hedging tool
Real estate has often been used as a hedge against inflation - the effects are transferred onto the tenants through rental increments. Inflation will work against the tenants when the market rises, landlords will increase rents during lease renewals and this becomes additional cost to the tenants.
About the Author
www.itrealtor.com is a Singapore property portal for real estate agents and home owners to post property listings for sale or rent in Singapore.
Information available for use by all without copyright but kindly provide link back to http://www.itrealtor.com/toolstips.php
Thursday, December 29, 2005
How to Make Your Apartment Safe by Kyle Thomas Haley
How to Make Your Apartment Safe
By Kyle Thomas Haley
There are special dangers involved with apartment living. This is because you live so close to many other people. Their actions can jeopardize your safety and so it's very important for you to be aware of what you must do to safeguard yourself, your family and your possessions.
Fire Safety . . .
Fire is perhaps the greatest danger in apartment buildings. With so many units joined together, it doesn't take long for fire to spread from one to another. The following guidelines are critical to your safety:
* Install smoke detectors in the kitchen, all bedrooms, the laundry area and hallways. You must test them every month and replace the batteries every 6 months. They won't do you any good if they aren't in working order.
* Keep fire extinguishers handy in the kitchen, laundry area and near your outside grill. * Develop an escape plan. This plan should include two ways of exiting - in most cases, this will probably include the main door and either a window or door wall. If you live on a higher floor and don't have access to a fire escape, purchase a rope ladder to use for exiting from windows or a balcony. Practice your escape plan regularly so each member of your family knows exactly what to do in case of fire.
* Never use an elevator during a fire. * Never park in front of fire hydrants or in fire lanes and make sure your guests don't either.
General Safety . . .
Fire isn't the only danger in an apartment building. You must also be aware of hazards that can exist no matter where you live and take precautions to prevent them.
* Install a carbon monoxide detector.
* Install screen guards or window stops and doorstops on your patio door to protect your children from falling. * Keep your apartment and building number near the telephone so your family or babysitter can access it in case of an emergency. Remember that memories can fail during emergencies.
* Make certain your apartment number is clearly marked on your door. * Be sure that each person in your family knows how to dial 911.
Protecting from Intruders . . .
There are many people coming and going in an apartment complex. Criminals count on this anonymity. That makes it very important to get to know the other tenants. When you do, not only are you better able to identify someone who doesn't belong, it also makes it more likely that tenants will look out for one another.
* Consider forming an "apartment watch". This is similar to a neighborhood watch but confined to your apartment complex. If a group of tenants is on the alert for suspicious behavior, they can prevent many problems from arising. * Install quality deadbolt locks on your door and place a wooden rod or steel brace on sliding doors. One caution about deadbolt locks - don't purchase those that require a key. In an emergency, you won't have time to search for the key.
* Make sure your landlord has installed good lighting in all stairways, hallways, and common areas like the laundry room.
* Make sure that if your building has a common entry, the entry door locks so that only tenants can enter. Never open that door for strangers.
If you follow these guidelines, practice good common sense, and are alert to what's going on around you, your apartment will provide a safe home for you and your family.
About the Author
Kyle Thomas Haley has been helping people relocate on the Internet since 1999 with Apartment and Relocation Websites:
An Apartment Directory and A Relocation Guide
Copyright 1999 - 2005 STANZEEKAY Inc. You have permission to publish this article, free of charge, as long as the bylines are included
By Kyle Thomas Haley
There are special dangers involved with apartment living. This is because you live so close to many other people. Their actions can jeopardize your safety and so it's very important for you to be aware of what you must do to safeguard yourself, your family and your possessions.
Fire Safety . . .
Fire is perhaps the greatest danger in apartment buildings. With so many units joined together, it doesn't take long for fire to spread from one to another. The following guidelines are critical to your safety:
* Install smoke detectors in the kitchen, all bedrooms, the laundry area and hallways. You must test them every month and replace the batteries every 6 months. They won't do you any good if they aren't in working order.
* Keep fire extinguishers handy in the kitchen, laundry area and near your outside grill. * Develop an escape plan. This plan should include two ways of exiting - in most cases, this will probably include the main door and either a window or door wall. If you live on a higher floor and don't have access to a fire escape, purchase a rope ladder to use for exiting from windows or a balcony. Practice your escape plan regularly so each member of your family knows exactly what to do in case of fire.
* Never use an elevator during a fire. * Never park in front of fire hydrants or in fire lanes and make sure your guests don't either.
General Safety . . .
Fire isn't the only danger in an apartment building. You must also be aware of hazards that can exist no matter where you live and take precautions to prevent them.
* Install a carbon monoxide detector.
* Install screen guards or window stops and doorstops on your patio door to protect your children from falling. * Keep your apartment and building number near the telephone so your family or babysitter can access it in case of an emergency. Remember that memories can fail during emergencies.
* Make certain your apartment number is clearly marked on your door. * Be sure that each person in your family knows how to dial 911.
Protecting from Intruders . . .
There are many people coming and going in an apartment complex. Criminals count on this anonymity. That makes it very important to get to know the other tenants. When you do, not only are you better able to identify someone who doesn't belong, it also makes it more likely that tenants will look out for one another.
* Consider forming an "apartment watch". This is similar to a neighborhood watch but confined to your apartment complex. If a group of tenants is on the alert for suspicious behavior, they can prevent many problems from arising. * Install quality deadbolt locks on your door and place a wooden rod or steel brace on sliding doors. One caution about deadbolt locks - don't purchase those that require a key. In an emergency, you won't have time to search for the key.
* Make sure your landlord has installed good lighting in all stairways, hallways, and common areas like the laundry room.
* Make sure that if your building has a common entry, the entry door locks so that only tenants can enter. Never open that door for strangers.
If you follow these guidelines, practice good common sense, and are alert to what's going on around you, your apartment will provide a safe home for you and your family.
About the Author
Kyle Thomas Haley has been helping people relocate on the Internet since 1999 with Apartment and Relocation Websites:
An Apartment Directory and A Relocation Guide
Copyright 1999 - 2005 STANZEEKAY Inc. You have permission to publish this article, free of charge, as long as the bylines are included
Texas Real Property Law for Commercial Landlords by Tri Nguyen
Selected Texas Property Code Provisions of Interest to Commercial Landlords
By Tri Nguyen, Esq.
I have found that landlords generally face the same set of issues and have the same set of questions pertaining to their rights, duties and obligations as landlords under Texas law. The answers to these questions depend on whether residential tenants or commercial tenants are involved. Although commercial and residential property ownership and operation have some similarities, the differences are numerous and diverse enough to justify separate treatment for each area. This article is intended to discuss issues related to commercial property with commercial tenants only. This article is my attempt to create a quick and very general reference guide on the rights, duties and obligations of commercial landlords and operators under the Texas Property Code. It is by no means complete, but hopefully is informative enough to assist the reader in asking informed questions of legal counsel and thus be more efficient and economical while consulting legal counsel.
You should not take this article as legal advice, and I strongly urge you to seek competent legal advice for your specific situation. The Texas legislature updates and passes new laws relating to landlord/tenant issues on a regular basis. In addition, Texas courts regularly interpret these laws. Thus, the laws discussed in this article are in effect as of December 2005. I have not assumed any duty or obligation to update this article beyond this date.
I. Duty to Mitigate
If a tenant abandons the leased premises in breach of the lease, the landlord has the duty to mitigate (lessen) the damages that the landlord would experience as a result of the abandonment. Thus, the landlord should not let the premises lie vacant in hopes of being able to recover lost rents from the tenant. This duty to mitigate damages may not be waived by the tenant, so any provision in the lease that tries to waive this duty or exempt the landlord from liability is void.
II. Security Deposit
A security deposit is any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease.
III. Retention of Security Deposit
Before returning the security deposit, the landlord may deduct from the deposit damages or charges for which the tenant is obligated under the lease or resulting from a breach of the lease. However, normal wear and tear (does not include deterioration that results from negligence, carelessness, accident or abuse) may not be withheld from the security deposit.
If the landlord retains any portion of the security deposit, the landlord must refund the balance of the security deposit and give the tenant a written description and itemized list of all deductions. However, this description and itemized list is not required if the tenant owes rent and no controversy exists concerning the amount of rent owed. The refund and written description and itemized list of all deductions is not required until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit. However, failure to provide a forwarding address does not cause the tenant to forfeit its right to receive a refund or a description of deductions.
IV. Refund of Security Deposit
A landlord must refund the security deposit not later than the 60th day after the date the tenant surrenders the premises and provides notice of the tenant's forwarding address.
V. Change of Landlord/Owner and the Security Deposit
The new owner or landlord of the leased premises is liable for the return of the security deposit starting from the date title to the leased premises is acquired, except where the new owner acquired the premises by foreclosure through a real estate mortgage. However, the former landlord or owner remains liable for the security deposit received while the person was the owner or landlord until the new owner delivers to the tenant a signed statement acknowledging that the new owner has received and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit.
VI. Liability of Landlord for Security Deposit
A landlord who in bad faith retains a security deposit is liable for an amount equal to the sum of $100, three times the portion of the security deposit wrongfully withheld, and the tenant's reasonable attorneys fees incurred in a suit to recover the deposit. It is presumed that a landlord who fails to return a security deposit or to provide a written description and itemized list of deductions on or before the 60th day after the date the tenant surrenders possession is acting in bad faith.
VII. Preventing Access to Leased Premises
A landlord may not intentionally prevent a tenant from entering the leased premises except with permission of the court unless such prevention results from (i) bona fide repairs, construction or an emergency, (ii) removing the contents of the leased premises abandoned by a tenant or (iii) changing the door locks of a tenant who is delinquent in paying at least a part of the rent. The lease may alter this provision.
VIII. Changing Lock Due to Delinquent Payments
If a landlord changes the door lock due to delinquent rent payments, the landlord must place a written notice on the tenant's front door stating the name and address or telephone number of the individual or company from which the new key may be obtained. The new key is only required to be provided during the tenant's regular business hours and only if the tenant pays the delinquent rent. The lease may alter this provision.
IX. Landlord's Removal of Property After Abandonment by the Tenant
A landlord may remove and store any property of a tenant that remains after the premises has been abandoned. The landlord may also dispose of the stored property if the tenant does not claim the property within 60 days after the date the property is stored. The landlord must deliver by certified mail to the tenant at the tenant's last known address a notice stating that the landlord may dispose of the tenant's property if the tenant does not claim the property within 60 days after the date the property is stored. A lease may alter this provision.
X. Abandonment by the Tenant
A tenant is presumed to have abandoned the premises if goods, equipment or other property, in a substantial enough amount to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course of the tenant's business. The lease may alter this provision.
XI. Interruption of Utilities
If the tenant pays for utility services directly to the utilities companies, the landlord may not interrupt or cause the interruption of such services unless the interruption results from bona fide repairs, construction or an emergency. A lease may alter this provision.
XII. Removal of Doors, Windows, Locks, Hinges, Etc.
A landlord may not remove a door, window, attic hatchway, lock, hinge, hinge pin, doorknob or other mechanism connected to a door, window or attic hatchway cover from the leased premises. Additionally, a landlord may not remove furniture, fixtures or appliances furnished by the landlord from the leased premises. However, the landlord may remove these items for a bona fide repair or replacement, which must be promptly performed. A lease may alter this provision.
XIII. Landlord May Terminate Lease Due to Public Indecency Conviction of Tenant
A landlord may terminate a lease signed or renewed after June 15, 1981 if the tenant or occupant uses the property for an activity for which the tenant, occupant or any of their agent or employee is convicted of public indecency (prostitution, promotion of prostitution, display or distribution of obscene materials, sexual acts with persons under the age of 18, etc.) and such person has exhausted or abandoned all avenues of direct appeal from the conviction. Notice of termination must be by written notice within six months after the right to terminate arises. The landlord obtains the right to possess the property on the 10th day after the date of notice is given.
XIV. Notice Requirement Prior to Eviction
The landlord must give a tenant who defaults or holds over beyond the end of the term at least three day's written notice to vacate the premises before the landlord files a forcible detainer suit, unless the parties contracted for a shorter or longer period of time in a written lease or agreement.
The notice to vacate must be given in person or by mail at the premises in question. If notice is delivered in person, it may be by personal delivery to the tenant or any person residing at the premises who is 16 years of age or older or personal delivery to the premises and affixing the notice to the inside of the main entry door. Notice by mail may be by regular mail, by registered mail or by certified mail, return receipt requested, to the premises in question. The notice period starts from the day on which the notice is delivered.
About the Author
Tri Nguyen practices primarily business, corporate and real estate law in Houston, Texas. He may be contacted by telephone at 713.513.4808 or e-mail at tri@trilawoffice.com. Prior to starting his own firm, Mr. Nguyen worked as an associate in the corporate and securities section of a nationally-recognized law firm located in Houston, Texas. Mr. Nguyen graduated from The University of Houston Law Center with honors.
By Tri Nguyen, Esq.
I have found that landlords generally face the same set of issues and have the same set of questions pertaining to their rights, duties and obligations as landlords under Texas law. The answers to these questions depend on whether residential tenants or commercial tenants are involved. Although commercial and residential property ownership and operation have some similarities, the differences are numerous and diverse enough to justify separate treatment for each area. This article is intended to discuss issues related to commercial property with commercial tenants only. This article is my attempt to create a quick and very general reference guide on the rights, duties and obligations of commercial landlords and operators under the Texas Property Code. It is by no means complete, but hopefully is informative enough to assist the reader in asking informed questions of legal counsel and thus be more efficient and economical while consulting legal counsel.
You should not take this article as legal advice, and I strongly urge you to seek competent legal advice for your specific situation. The Texas legislature updates and passes new laws relating to landlord/tenant issues on a regular basis. In addition, Texas courts regularly interpret these laws. Thus, the laws discussed in this article are in effect as of December 2005. I have not assumed any duty or obligation to update this article beyond this date.
I. Duty to Mitigate
If a tenant abandons the leased premises in breach of the lease, the landlord has the duty to mitigate (lessen) the damages that the landlord would experience as a result of the abandonment. Thus, the landlord should not let the premises lie vacant in hopes of being able to recover lost rents from the tenant. This duty to mitigate damages may not be waived by the tenant, so any provision in the lease that tries to waive this duty or exempt the landlord from liability is void.
II. Security Deposit
A security deposit is any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease.
III. Retention of Security Deposit
Before returning the security deposit, the landlord may deduct from the deposit damages or charges for which the tenant is obligated under the lease or resulting from a breach of the lease. However, normal wear and tear (does not include deterioration that results from negligence, carelessness, accident or abuse) may not be withheld from the security deposit.
If the landlord retains any portion of the security deposit, the landlord must refund the balance of the security deposit and give the tenant a written description and itemized list of all deductions. However, this description and itemized list is not required if the tenant owes rent and no controversy exists concerning the amount of rent owed. The refund and written description and itemized list of all deductions is not required until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit. However, failure to provide a forwarding address does not cause the tenant to forfeit its right to receive a refund or a description of deductions.
IV. Refund of Security Deposit
A landlord must refund the security deposit not later than the 60th day after the date the tenant surrenders the premises and provides notice of the tenant's forwarding address.
V. Change of Landlord/Owner and the Security Deposit
The new owner or landlord of the leased premises is liable for the return of the security deposit starting from the date title to the leased premises is acquired, except where the new owner acquired the premises by foreclosure through a real estate mortgage. However, the former landlord or owner remains liable for the security deposit received while the person was the owner or landlord until the new owner delivers to the tenant a signed statement acknowledging that the new owner has received and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit.
VI. Liability of Landlord for Security Deposit
A landlord who in bad faith retains a security deposit is liable for an amount equal to the sum of $100, three times the portion of the security deposit wrongfully withheld, and the tenant's reasonable attorneys fees incurred in a suit to recover the deposit. It is presumed that a landlord who fails to return a security deposit or to provide a written description and itemized list of deductions on or before the 60th day after the date the tenant surrenders possession is acting in bad faith.
VII. Preventing Access to Leased Premises
A landlord may not intentionally prevent a tenant from entering the leased premises except with permission of the court unless such prevention results from (i) bona fide repairs, construction or an emergency, (ii) removing the contents of the leased premises abandoned by a tenant or (iii) changing the door locks of a tenant who is delinquent in paying at least a part of the rent. The lease may alter this provision.
VIII. Changing Lock Due to Delinquent Payments
If a landlord changes the door lock due to delinquent rent payments, the landlord must place a written notice on the tenant's front door stating the name and address or telephone number of the individual or company from which the new key may be obtained. The new key is only required to be provided during the tenant's regular business hours and only if the tenant pays the delinquent rent. The lease may alter this provision.
IX. Landlord's Removal of Property After Abandonment by the Tenant
A landlord may remove and store any property of a tenant that remains after the premises has been abandoned. The landlord may also dispose of the stored property if the tenant does not claim the property within 60 days after the date the property is stored. The landlord must deliver by certified mail to the tenant at the tenant's last known address a notice stating that the landlord may dispose of the tenant's property if the tenant does not claim the property within 60 days after the date the property is stored. A lease may alter this provision.
X. Abandonment by the Tenant
A tenant is presumed to have abandoned the premises if goods, equipment or other property, in a substantial enough amount to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course of the tenant's business. The lease may alter this provision.
XI. Interruption of Utilities
If the tenant pays for utility services directly to the utilities companies, the landlord may not interrupt or cause the interruption of such services unless the interruption results from bona fide repairs, construction or an emergency. A lease may alter this provision.
XII. Removal of Doors, Windows, Locks, Hinges, Etc.
A landlord may not remove a door, window, attic hatchway, lock, hinge, hinge pin, doorknob or other mechanism connected to a door, window or attic hatchway cover from the leased premises. Additionally, a landlord may not remove furniture, fixtures or appliances furnished by the landlord from the leased premises. However, the landlord may remove these items for a bona fide repair or replacement, which must be promptly performed. A lease may alter this provision.
XIII. Landlord May Terminate Lease Due to Public Indecency Conviction of Tenant
A landlord may terminate a lease signed or renewed after June 15, 1981 if the tenant or occupant uses the property for an activity for which the tenant, occupant or any of their agent or employee is convicted of public indecency (prostitution, promotion of prostitution, display or distribution of obscene materials, sexual acts with persons under the age of 18, etc.) and such person has exhausted or abandoned all avenues of direct appeal from the conviction. Notice of termination must be by written notice within six months after the right to terminate arises. The landlord obtains the right to possess the property on the 10th day after the date of notice is given.
XIV. Notice Requirement Prior to Eviction
The landlord must give a tenant who defaults or holds over beyond the end of the term at least three day's written notice to vacate the premises before the landlord files a forcible detainer suit, unless the parties contracted for a shorter or longer period of time in a written lease or agreement.
The notice to vacate must be given in person or by mail at the premises in question. If notice is delivered in person, it may be by personal delivery to the tenant or any person residing at the premises who is 16 years of age or older or personal delivery to the premises and affixing the notice to the inside of the main entry door. Notice by mail may be by regular mail, by registered mail or by certified mail, return receipt requested, to the premises in question. The notice period starts from the day on which the notice is delivered.
About the Author
Tri Nguyen practices primarily business, corporate and real estate law in Houston, Texas. He may be contacted by telephone at 713.513.4808 or e-mail at tri@trilawoffice.com. Prior to starting his own firm, Mr. Nguyen worked as an associate in the corporate and securities section of a nationally-recognized law firm located in Houston, Texas. Mr. Nguyen graduated from The University of Houston Law Center with honors.
Screening Out Prospective Tenants Based on Credit Checks? by David Melancon
Increasingly, landlords throughout North America are screening prospective tenants in order to reduce the risks involved when renting to unknown individuals. Risks which can easily become quite costly to an unsuspecting landlord.
It's easy to prove the increasing popularity of tenant screening. See for yourself! Simply "Google" the following two words, tenant screening. Within seconds you will be flooded with a variety of small and large companies offering the service, and links to information on tenant screening. Go ahead! The last time I tried the results numbered 4,110,000.
The high number of results demonstrate that there is a rising awareness, amongst landlords, about the value of taking the necessary steps to protecting your property. The demand is growing and so is the supply.
However, although tenant screening is an important and effective tool for any landlord, there is an overwhelming trend, on the part of landlords and the service providers, to use the results of a credit check as the main reason for screening out prospective tenants. In my opinion, this is a mistake.
Of course, credit checks do provide valuable data on individuals. These reports inform us of the prospective tenant's credit history, both good and bad. But what else does an automated list of vague descriptions, and codes tell us about a potential tenant?
I dare say the answer is, not much.
Keeping aside the fact that credit reports are one-sided, and often contain errors. Credit checks can not provide any true insight on a potential tenant. For example, the credit check may lead you to think the tenant is a bad prospect, but it doesn't take into account the possibility that she went through a difficult period a few years back, but has long been "back on track".
A landlord can easily pass up a "perfect tenant", in his thirties, simply because he had trouble making payments while going through school, in his twenties. Base your decision on a credit report, and you lose a potentially ideal tenants.
What about a favorable credit report?
In my opinion, it would be a mistake for any landlord or property manager to place too much worth on a perfect credit score.
As a bad credit report can be misleading, so can a good credit report. For example, the report will not tell us that this particular individual has a reputation of constantly arguing with neighbors, and causing an all-around uncomfortable atmosphere for the landlord's other tenants.
As well, a credit report will not describe how the prospective tenant, with the perfect credit check, sitting in front of you, stuck the former landlord with an $800.00 hydro bill... Unpaid utilities often do not appear on a credit report.
Base your decision on a credit report, and you take the chance of entering into a rental agreement with a disaster.
As a landlord, it is in your best interest to exercise due diligence when considering a prospective tenant, and that means tenant screening. However, in order to truly ensure a potential tenant is the right one for you, contacting current and past landlords, employers and references is the best method.
First hand information is, and will always be better, and more revealing than any automated report.
About the Author
David Melancon owns and operates IntelMatters a research company specializing in tenant and pre-employment screening, throughout North America.
www.intelmatters.com
Knowledge is the key to success!
It's easy to prove the increasing popularity of tenant screening. See for yourself! Simply "Google" the following two words, tenant screening. Within seconds you will be flooded with a variety of small and large companies offering the service, and links to information on tenant screening. Go ahead! The last time I tried the results numbered 4,110,000.
The high number of results demonstrate that there is a rising awareness, amongst landlords, about the value of taking the necessary steps to protecting your property. The demand is growing and so is the supply.
However, although tenant screening is an important and effective tool for any landlord, there is an overwhelming trend, on the part of landlords and the service providers, to use the results of a credit check as the main reason for screening out prospective tenants. In my opinion, this is a mistake.
Of course, credit checks do provide valuable data on individuals. These reports inform us of the prospective tenant's credit history, both good and bad. But what else does an automated list of vague descriptions, and codes tell us about a potential tenant?
I dare say the answer is, not much.
Keeping aside the fact that credit reports are one-sided, and often contain errors. Credit checks can not provide any true insight on a potential tenant. For example, the credit check may lead you to think the tenant is a bad prospect, but it doesn't take into account the possibility that she went through a difficult period a few years back, but has long been "back on track".
A landlord can easily pass up a "perfect tenant", in his thirties, simply because he had trouble making payments while going through school, in his twenties. Base your decision on a credit report, and you lose a potentially ideal tenants.
What about a favorable credit report?
In my opinion, it would be a mistake for any landlord or property manager to place too much worth on a perfect credit score.
As a bad credit report can be misleading, so can a good credit report. For example, the report will not tell us that this particular individual has a reputation of constantly arguing with neighbors, and causing an all-around uncomfortable atmosphere for the landlord's other tenants.
As well, a credit report will not describe how the prospective tenant, with the perfect credit check, sitting in front of you, stuck the former landlord with an $800.00 hydro bill... Unpaid utilities often do not appear on a credit report.
Base your decision on a credit report, and you take the chance of entering into a rental agreement with a disaster.
As a landlord, it is in your best interest to exercise due diligence when considering a prospective tenant, and that means tenant screening. However, in order to truly ensure a potential tenant is the right one for you, contacting current and past landlords, employers and references is the best method.
First hand information is, and will always be better, and more revealing than any automated report.
About the Author
David Melancon owns and operates IntelMatters a research company specializing in tenant and pre-employment screening, throughout North America.
www.intelmatters.com
Knowledge is the key to success!
Investing In Real Estate by Max Plata
Once you purchase your first home you realize the satisfaction in owning a piece of real estate. For many people their interest doesn't stop there and they decide they'd like to continue investing in real estate beyond the home they live in.
Investing in property can be a dynamic way of making extra income. For many people their investing experiences allow them to work less at their 9 to 5 job and instead devote more time to producing an income from their investments.
The first thing you need to consider if you look towards investing in the real estate market is what types of properties your dollars should be spent on. There are two choices that you'll probably want to research. One is residential properties and the other is commercial properties.
Residential property includes everything from single family homes to multi-family dwellings. If you decide on investing in the purchase of a single family home, you'll be planning on renting it out. In this case you might act as the landlord yourself, taking care of completing the necessary paperwork, including a rental contract as well as collecting rent payments.
If you decide on this route, you might be investing more than just your money. You'll also be investing quite a bit of time, not only showing the property to prospective tenants but also coming to their rescue if there is a problem. Problems can range from a broken door look to a furnace that needs to be replaced.
If the prospect of investing that much time in your real estate venture is a bit overwhelming you can hire someone to manage the property for you. This saves you a great deal of time and trouble but it costs money as well, as you'll have to pay them a salary.
This is almost always the case when investing in a multi-family dwelling. There are many details involved in running an apartment building or condominium complex. The tenants needs have to be addressed in a timely manner and in order to do this you'll need to think about investing in a property manager.
There are many people who are experienced in this field and enjoy this type of work. If you are investing in a property that is worth a great deal of money, you'll want to hire someone who has experience in property management to assist you.
When it comes to owning a property such as an apartment building the key to success is in keeping the units full thus ensuring a steady flow of income. This often means investing in advertising. Advertising can be done in several ways. A popular approach is to post signs on the outside of the building showcasing that there are vacancies. If the property is particularly affordable, placing the cost of monthly rent on the sign is a good idea as well.
Another form of advertising that works well whether you're renting out an apartment or a house is investing in a newspaper advertisement. Many people who are looking for a new place to live scour the classifieds daily in the hope that they'll find exactly the right rental property in the neighborhood they desire.
Investing in real estate can be a very rewarding experience and with the help of a seasoned real estate agent, you'll be able to purchase properties that will yield you a profit year after year.
About the Author
Investing Resources and Information
Investing in property can be a dynamic way of making extra income. For many people their investing experiences allow them to work less at their 9 to 5 job and instead devote more time to producing an income from their investments.
The first thing you need to consider if you look towards investing in the real estate market is what types of properties your dollars should be spent on. There are two choices that you'll probably want to research. One is residential properties and the other is commercial properties.
Residential property includes everything from single family homes to multi-family dwellings. If you decide on investing in the purchase of a single family home, you'll be planning on renting it out. In this case you might act as the landlord yourself, taking care of completing the necessary paperwork, including a rental contract as well as collecting rent payments.
If you decide on this route, you might be investing more than just your money. You'll also be investing quite a bit of time, not only showing the property to prospective tenants but also coming to their rescue if there is a problem. Problems can range from a broken door look to a furnace that needs to be replaced.
If the prospect of investing that much time in your real estate venture is a bit overwhelming you can hire someone to manage the property for you. This saves you a great deal of time and trouble but it costs money as well, as you'll have to pay them a salary.
This is almost always the case when investing in a multi-family dwelling. There are many details involved in running an apartment building or condominium complex. The tenants needs have to be addressed in a timely manner and in order to do this you'll need to think about investing in a property manager.
There are many people who are experienced in this field and enjoy this type of work. If you are investing in a property that is worth a great deal of money, you'll want to hire someone who has experience in property management to assist you.
When it comes to owning a property such as an apartment building the key to success is in keeping the units full thus ensuring a steady flow of income. This often means investing in advertising. Advertising can be done in several ways. A popular approach is to post signs on the outside of the building showcasing that there are vacancies. If the property is particularly affordable, placing the cost of monthly rent on the sign is a good idea as well.
Another form of advertising that works well whether you're renting out an apartment or a house is investing in a newspaper advertisement. Many people who are looking for a new place to live scour the classifieds daily in the hope that they'll find exactly the right rental property in the neighborhood they desire.
Investing in real estate can be a very rewarding experience and with the help of a seasoned real estate agent, you'll be able to purchase properties that will yield you a profit year after year.
About the Author
Investing Resources and Information
Tuesday, December 13, 2005
Do You Need Rental Insurance?
Do You Need Rental Insurance?
Copyright © 1999-2005 Kyle Thomas Haley
Apartment Rental dot Net
www.apartment-rental.net/
Many renters don’t stop to think about what happens if there is a fire, someone breaks in and steals their new TV or stereo, or a visitor slips and falls on their property. The sad truth is; you will be responsible! While your landlord has insurance that covers the actual building, that coverage does not include your personal property or liability for injuries which occur in the space you rent ~ be it an apartment or a house and yard.
If a fire should destroy or damage your home, your landlord’s insurance will cover the structure. It won’t cover damage or loss of your belongings. Neither will it provide for the cost of temporary housing for you and your family.
You may think you don’t own enough personal property to make the cost of insurance worthwhile. You’re probably wrong! If you sit down and add up the cost of everything you own, you may be in for a big surprise. Consider what you have invested in such things as:
* Furniture and accessories
* Electronics like TV, stereo, computers
* Small appliances like microwaves, toaster ovens, etc.
* Clothing
* Art work like paintings or prints
* Dishes, silverware and cookware
* Sporting equipment
* Books
* Jewelry
Could you afford to replace all of these things?
Even worse, what would you do if a friend is injured on your property and decides to sue you for medical costs and more? It’s a scary thought, isn’t it?
Are you beginning to see why rental insurance may be a very wise investment?
The cost of rental insurance is based on several factors:
* The dollar amount of your coverage
* Deductibles
* Whether you choose to be reimbursed for Actual Cash Value or Replacement Costs (more about that in a minute)
* Where your rental property is located and the number of previous claims made, not only by you, but by others living in the same area.
Let me explain the difference between Actual Cash Value (ACV) and Replacement Costs. ACV is the value of your property at the time a loss takes place. For example, if your television set is five years old, it’s valued at much less than if it were brand new. The lesser amount is what you are reimbursed.
However, if you opt for Replacement Cost, you’re paid whatever it costs to go out and buy a new TV with similar features. Insuring for replacement cost raises the amount of your premium so it’s a good idea to get quotes for both ACV and Replacement Cost policies. Then you can decide which option fits your needs and
budget.
Another thing to keep in mind is that jewelry, valuable collections, and guns are usually covered under a separate policy or “rider”. If you own these kinds of items, be sure to tell your insurance agent. You don’t want to find out after disaster strikes that they aren’t covered or that they aren’t covered for their true value.
One way you can reduce the cost of your rental insurance is to check with whichever company insures your car. If they provide rental insurance you may be eligible for a multi-line discount. Rental insurance may be worth the investment just for the peace of mind it offers you.
———————————————————————
Kyle Thomas Haley of has been helping people relocate on the Internet since 1999 with Relocation Websites such as: www.apartment-rental.net/ Copyright 1999 – 2005 STANZEEKAY Inc.
Copyright © 1999-2005 Kyle Thomas Haley
Apartment Rental dot Net
www.apartment-rental.net/
Many renters don’t stop to think about what happens if there is a fire, someone breaks in and steals their new TV or stereo, or a visitor slips and falls on their property. The sad truth is; you will be responsible! While your landlord has insurance that covers the actual building, that coverage does not include your personal property or liability for injuries which occur in the space you rent ~ be it an apartment or a house and yard.
If a fire should destroy or damage your home, your landlord’s insurance will cover the structure. It won’t cover damage or loss of your belongings. Neither will it provide for the cost of temporary housing for you and your family.
You may think you don’t own enough personal property to make the cost of insurance worthwhile. You’re probably wrong! If you sit down and add up the cost of everything you own, you may be in for a big surprise. Consider what you have invested in such things as:
* Furniture and accessories
* Electronics like TV, stereo, computers
* Small appliances like microwaves, toaster ovens, etc.
* Clothing
* Art work like paintings or prints
* Dishes, silverware and cookware
* Sporting equipment
* Books
* Jewelry
Could you afford to replace all of these things?
Even worse, what would you do if a friend is injured on your property and decides to sue you for medical costs and more? It’s a scary thought, isn’t it?
Are you beginning to see why rental insurance may be a very wise investment?
The cost of rental insurance is based on several factors:
* The dollar amount of your coverage
* Deductibles
* Whether you choose to be reimbursed for Actual Cash Value or Replacement Costs (more about that in a minute)
* Where your rental property is located and the number of previous claims made, not only by you, but by others living in the same area.
Let me explain the difference between Actual Cash Value (ACV) and Replacement Costs. ACV is the value of your property at the time a loss takes place. For example, if your television set is five years old, it’s valued at much less than if it were brand new. The lesser amount is what you are reimbursed.
However, if you opt for Replacement Cost, you’re paid whatever it costs to go out and buy a new TV with similar features. Insuring for replacement cost raises the amount of your premium so it’s a good idea to get quotes for both ACV and Replacement Cost policies. Then you can decide which option fits your needs and
budget.
Another thing to keep in mind is that jewelry, valuable collections, and guns are usually covered under a separate policy or “rider”. If you own these kinds of items, be sure to tell your insurance agent. You don’t want to find out after disaster strikes that they aren’t covered or that they aren’t covered for their true value.
One way you can reduce the cost of your rental insurance is to check with whichever company insures your car. If they provide rental insurance you may be eligible for a multi-line discount. Rental insurance may be worth the investment just for the peace of mind it offers you.
———————————————————————
Kyle Thomas Haley of has been helping people relocate on the Internet since 1999 with Relocation Websites such as: www.apartment-rental.net/ Copyright 1999 – 2005 STANZEEKAY Inc.
Tuesday, November 15, 2005
Get a better mortgage refinance deal than your local bank offers by Mansi gupta
Gone are the days when money could be fetched either by mere mortgaging or financing something. Now it is time to get money via an amalgam of the two i.e. Mortgage Refinance. Mortgage refinance is a smart idea to have a good credit sum and repay it in an easy fashion. In simple terms a refinanced mortgage is one where a borrower repays a previous loan by taking a new one. The main motive behind refinance mortgage is to get a lower interest rate, lowering their payments or to take cash out of their home equity. So basically in mortgage refinance refers to taking a secured loan to replace the existing loan that is secured via some assets of yours.
Let us first delve into the factors that instigate a refinanced mortgage. There are several reasons that instigate people to opt for refinance. For instance
(a) Mortgage refinance reduces the interest rate on your mortgage. It not only minimizes your EMIs or monthly installments but also brings down the total amount that you need to repay.
(b) Another wonderful feature of mortgage refinance is the reduction in the tenure of the loan, which is immensely effective in saving lot many bucks.
(c) Mortgage refinance is a smart idea to consolidate or fuse the amount you need to repay.
(d) Mortgages refinance serves you with the most essential thing i.e. cash in hand. You can draw on an equity built up in the house to acquire cash amount for several purposes such as your daughter's marriage, child education etc.
(e) If you want to have an adjustable-rate mortgage i.e. ARM and a fixed-rate loan in order to ensure you regarding the mortgage payment, mortgage refinance is a brilliant idea.
However there are other things to be taken into consideration. First and foremost mortgage refinancing can be recommended if the present rate on your mortgage is at least 2 percentage points higher than the existing market rate. Second you need to know that for how long you propose to stay in the house. Third you need to know that according to many sources given the costs of refinancing, it takes at least three years to realize completely the savings made from a relatively lower interest rate. Finally in order to go for mortgage refinance is to enlist complete expenditure of refinance and calculate your monthly installments. Knowing this will enable you to decide whether you should opt for refinance or not.
Well before going for a mortgage refinance you can also ask yourself questions ponder over questions such as- by how much will your existing monthly installment be lowered, what will be the financing cost that you will have to pay, how much will you owe in the house and for how much was the initial payment for the house made etc. Once after going through the various factors and conditions you feel it is appropriate to go for a mortgage refinance (which is true with most of the cases) then the first step is to consult a good real estate agent, mortgage lender as well as an attorney and other legal practitioners. Searching online is even an excellent option.
About the Author
Mansi gupta writes about mortgage refinance .
Let us first delve into the factors that instigate a refinanced mortgage. There are several reasons that instigate people to opt for refinance. For instance
(a) Mortgage refinance reduces the interest rate on your mortgage. It not only minimizes your EMIs or monthly installments but also brings down the total amount that you need to repay.
(b) Another wonderful feature of mortgage refinance is the reduction in the tenure of the loan, which is immensely effective in saving lot many bucks.
(c) Mortgage refinance is a smart idea to consolidate or fuse the amount you need to repay.
(d) Mortgages refinance serves you with the most essential thing i.e. cash in hand. You can draw on an equity built up in the house to acquire cash amount for several purposes such as your daughter's marriage, child education etc.
(e) If you want to have an adjustable-rate mortgage i.e. ARM and a fixed-rate loan in order to ensure you regarding the mortgage payment, mortgage refinance is a brilliant idea.
However there are other things to be taken into consideration. First and foremost mortgage refinancing can be recommended if the present rate on your mortgage is at least 2 percentage points higher than the existing market rate. Second you need to know that for how long you propose to stay in the house. Third you need to know that according to many sources given the costs of refinancing, it takes at least three years to realize completely the savings made from a relatively lower interest rate. Finally in order to go for mortgage refinance is to enlist complete expenditure of refinance and calculate your monthly installments. Knowing this will enable you to decide whether you should opt for refinance or not.
Well before going for a mortgage refinance you can also ask yourself questions ponder over questions such as- by how much will your existing monthly installment be lowered, what will be the financing cost that you will have to pay, how much will you owe in the house and for how much was the initial payment for the house made etc. Once after going through the various factors and conditions you feel it is appropriate to go for a mortgage refinance (which is true with most of the cases) then the first step is to consult a good real estate agent, mortgage lender as well as an attorney and other legal practitioners. Searching online is even an excellent option.
About the Author
Mansi gupta writes about mortgage refinance .
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