Five Upgrades To Do To Create Your Dream Kitchen and Bath

 For ages those in the industry have told sellers that a bathroom or kitchen remodel will also benefit the resale value of their home. Homeowners always think of these upgrades when they are ready to sell their home. Homeowners should do the upgrades while they still live in their home so they can enjoy the benefits. Here are five things to do to upgrade your kitchen and bathroom for you to add style and functionality.

1. Upgrade Your Kitchen Cabinets

Upgrading your kitchen cabinets can instantly give your kitchen a new and refreshed look. You can simply buy an off-the shelf style or have custom cabinets built. If you would like to make your kitchen feel bigger and brighter, then a shaker-style cabinet in white is the perfect option. Choose cabinets with the functions that you want and that will work for you. Remember what kind of material a cabinet is made out of is important, those made out of plywood are stronger and are better at holding off water damage.

2. Install New Countertops

Another great way to give your kitchen a great new look is by getting new countertops. Today’s countertops are more durable and easier to maintain. “We’re seeing a lot of new materials in countertops. Products like ultra-compact, quartzite and porcelain are incredibly strong; scratch-, stain- and heat-resistant; and require practically zero maintenance,” says Ximena Johnson, product manager at Cabinets to Go.

3. Add a Stylish Bathroom Vanity

When you think of a bathroom vanity, you think of storage and a counter to put your toiletries, but a bathroom vanity is just as much the focal point of a bathroom. Getting a new vanity in your bathroom will give the whole room a refreshed look. “Homeowners are becoming more adventurous. Statement colors like rich Newport Blue and warm Montpelier Sage are having a moment. At the same time, classic favorites like Nantucket Bluff, a gorgeous, warm cream, are being used in fun and refreshing ways. Bathrooms are a great place to play with a pop of color, especially if you’re not ready to commit in the more high-traffic rooms of the house. We’re renovating in my own home right now and using Newport Blue raised-panel cabinets for our bath vanity,” says Johnson.

4. Switch to Waterproof Flooring

Hardwood floors are very popular, however they are prone to water damage. A good alternative is a vinyl floor that has a hardwood look. “XRP waterproof vinyl flooring stands up to daily traffic and can be installed just about anywhere in the home and over a variety of subfloors, including bathrooms, kitchens, living rooms and bedrooms,” suggests Johnson.

5. Rethink the Little Touches

“The devil is in the details when you’re remodeling, particularly when it comes to important, everyday rooms like kitchens and bathrooms,” says Johnson. If you do not want to do a big rehaul in your bathroom or kitchen, update smaller elements in the room. Change out the cabinet handles for a more updated look or add a tiled backsplash behind a vanity or the kitchen stove.

Remember the little touches can create a fresh new look in your kitchen or bathroom. These small touches can make you fall in love with these rooms in a new light!

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Freddie Mac Wants To Help Renters Build Up Their Credit Through

 Renters now have a chance to use their rental payments to help build their credit scores. Freddie Mac has a new program that allows renters to use their on-time monthly rent payments to build up their credit. This is good news for the renters but also for the owners or managers of rental properties as an incentive. Property owners or rental managers can now report on-time rental payments to the credit bureaus.

This new program's purpose is to help those who do not have a credit score. It is reported that 45 million U.S. adults have no credit score. In fact, less than 10% of renters currently see their on-time rental payment history reflected in their credit scores. This is preventing many U.S. adults from getting some of the best mortgage rates in order to purchase a new home.

“Rent payments are often the single largest monthly line item in a family’s budget, but paying your rent on time does not show up in a credit report like a mortgage payment,” says Michael DeVito, CEO of Freddie Mac. “That puts the 44 million households who rent at a significant disadvantage when they seek financing for a home, a car, or even an education. While there remains more to do, this is a meaningful step in addressing this age-old problem.”

Esusu Financial Inc. technology is used by Freddi Mac to report rental payments and rental data to all three credit bureaus. When a renter misses a payment, it will automatically unenroll renters. As an incentive, Freddie Mac will allow closing cost credits on multi-family loans to those who chose to use the Esusu platform.

“At present, the most common way for rents to be reported to the credit bureaus is when there is a missed payment that has gone to a collections agency,” says Alexis Sofyanos, senior director of Equity in Multifamily Housing at Freddie Mac. “Freddie Mac wants to flip that script, so that renters who pay their rent on time and in full each month get credit for doing so, while also putting in safeguards for the most vulnerable.”

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The Homebuying Process Made Easy

 Buying a home is can be a stressful and complicated process. Homes.com reported that 40% of people say that purchasing a home is one of the most stressful events. This is a life-changing event and homeowners should be excited about it.

Now is an awesome time to purchase a home with low-interest rates. In fact, in the past 18 months, the low-interest rates have pushed homeownership up by 2.1 million in 2020. If you are in the market for a new home becoming familiar with the steps you must take can help smooth out the obstacles that might come your way.

Determine How Much Home You Can Afford

This is the first basic step. A homeowner needs to know how much house they can afford. It is important to become familiar with the debt-to-income ratio (DTI). The DTI is the percentage of your income required to pay down existing debt.

Professionals in the industry advise keeping your housing expenses around 30% or less of your annual income. So if you have an annual income of $50,000 your expenses should not be over $15,000 a year. These expenses include your mortgage payments, property taxes, and homeowners insurance.

Get A Pre-Approval Letter

Once you have established how much you can afford, then you need to get a pre-approval letter. Having a pre-approval letter lets agents and sellers know that you are a serious buyer. Just remember that each pre-approval letter you obtain will put a hard inquiry on your credit report.

Some leaders in the industry suggest getting more than one pre-approval letter. If you do decide to do this. Get them within a 30-day period so that it will count as just one hard inquiry.

Explore Your Mortgage Options

You will want to shop around to find the best rate and the best mortgage option for you. There are two mortgage types that leaders suggest. The fixed-rate mortgage loan has a rate that stays the same so the payment throughout the loan will be the same. The adjustable-rate mortgage (ARMs) begins with a fixed rate but does change every so often. If you are planning to stay in your home for a shorter period of time, then this loan might best suit you.

Another thing to consider is mortgage points. If you want to reduce your long-term costs you can purchase mortgage points to save. You can purchase these at closing and each point is worth 1% of your mortgage amount and each point will reduce your rate by .25%.

Take these steps into consideration before you start on your homebuying journey. Remember to choose a Realtor who can help you through the whole process.

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Things To Consider When Deciding To Downsize Your Home

 

Different stages in your life also can affect the amount of living space you need. If you are in an empty nest stage or just want a change, downsizing might be your answer. Of course, downsizing has financial advantages but a smaller living space also means less upkeep, and lower monthly expenses overall.

Taxes can play a big part in this decision. Selling your bigger home will net you more income that can be taxed. According to the Department of Treasury Internal Revenue Service (IRS), if you sell your principal residence for a profit, up to $250,000 of that capital gain can be excluded from tax. If you are a married couple who files jointly you could have up to $500,000 from the sale of your home that is not taxed. For example, there are exceptions if a homeowner has owned their home for several decades or if a homeowner lives in a neighborhood that has experienced a huge appreciation.

Before selling your current home check to see if you pass the ownership and use test from the IRS. For you to claim the maximum exclusion you must have owned your current house you are selling for at least two years and the house you are selling must be your primary residence for at least two out of the last five years. The two years counted towards residency do not have to be consecutive.

The IRS will make exceptions such as selling before owning a home for two years because of a job change, divorce, or natural disaster or what the IRS deems as an unforeseen circumstance.  If the IRS decides you are eligible, then you will be able to prorate the exclusion.

You will need to determine the capital gains on the sale of your home. In order to do this, take the cost basis and subtract it from the selling price. Your cost basis includes the original purchase price, settlement fees, closing costs. The higher the cost basis the lower your potential tax liability will be.

If you are in the market to downsize, go through a local sales agent to both sell your current home and purchase your downsized home. A Realtor can help you with the right financial way to go when downsizing.

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