Category: Blog

Homeowners understand the time, energy, and costs that go into buying a home, but when it comes time to sell their home, they may not be as prepared. Whether it’s making repairs and upgrades to increase a home’s value, or taxes that need to be paid, there are potential costs that homeowners must realize when selling a home. 

Home Repair Costs

Before putting your house on the market, there may be some repairs that need to be made. Patching holes in the walls, painting, replacing faulty appliances, and making sure there are no leaky showers and faucets will make your home more attractive to a buyer. If you aren’t up for making repairs, there is always the option of crediting your buyers with money to make the repairs themselves. 

Taxes 

There are two types of taxes that homeowners may have to pay when selling their home.

 

•   are often paid annually and will be prorated for the amount of time you have owned the home. Therefore, if you sell your house on July 1st, you will be responsible for taxes from January 1 through June 30, while the buyer of the home will be responsible for the rest of the year. 

 

 

• Capital Gains Taxes are calculated after you sell your home and make a profit. You may be able to exclude $250,000 if you file your taxes individually or $500,000 if you file with a spouse. Make sure to consult with a tax professional if you anticipate a large gain from the sale of your home.  

 

Real Estate Agent Fees 

Real estate agent commission fees are usually 6% of your selling price. While there are discount brokers out there, remember that, just like with other aspects of life, you get what you pay for. Trusting a local, professional real estate professional usually pays off by getting good representation and potentially a higher price for your home. 

Closing Costs 

Common closing costs include title insurance, transfer taxes, homeowner’s association fees, and property taxes owed for the amount of time you lived in the home. Buyers may be asked to pay for some of them, but it is likely that as a seller you will have to contribute to the costs. 

Butler Mortgage Can Help 

The process of transitioning between homes can become costly and overwhelming. Thankfully, Butler Mortgage has been working for over 25 years to make the home buying and selling process more comfortable and seamless for all parties involved. Let us help you through your journey by calling 407-931-3800 or by filling out our free consultation form online.

Purchasing a home may seem like an intimidating process, especially if you are a first-time buyer. To ease the stress of buying a home, ask your mortgage lender these six questions: 

• How Do I Determine My Homebuying Budget? 

Before setting your sights on a house, you need to know what you can afford. When setting a homebuying budget, it’s important to have a seasoned mortgage lender review your finances including your assets, credit, income, and existing debt. Once your financial evaluation is complete, your lender can determine which loan and rate best fits your needs. More importantly, a good lender will help you determine not only what you qualify for, but what payment amount fits within your comfort level. The lender’s goal is to make sure you obtain the house of your dreams while ensuring you do not stay up at night worrying about high payments.

• What Is the Interest Rate? 

Mortgage interest rates can vary based on your credit score, down payment, and the location of the home you are purchasing. Be sure to work with your mortgage lender to find the lowest rate for your particular mortgage program. 

• Which Loan Should I Choose? 

There are a variety of different loans available to homebuyers. Which loan is best for you largely depends on your specific financial situation. Common loan types that you may qualify for include: 

1. Conventional mortgages (fixed or adjustable)

2. FHA loans 

3. USDA loans 

4. VA loans 

Your mortgage lender will consider your loan qualifications and discuss with you each respective loan’s terms and interest rate before matching you with a loan that best suits your needs. 

• What Credit Score Is Needed to Qualify for a Loan? 

Credit scores measure the likelihood of your ability to repay your loan. While different loans require different credit scores, the higher your credit score, the better your chances of loan approval. Conversely, if you have a lower credit score, your loan options may be limited. A credit score of 700 or above is considered good for loan approval; however, if you are well below that number, there may still be plenty of loan options available to you. When determining your loan options, your mortgage lender will factor in your credit score and discuss which programs you qualify for.

• How Much Should I Put Down for a Down Payment? 

The amount you need for a down payment can vary depending on which loan you’re taking out. Despite popular belief, not all loans require a 20% down payment. With certain government loans, it’s possible to put as low as 0 – 3% down on a home. Your mortgage lender will be able to assist you in determining how much you need for a down payment.  

• What Is a Rate Lock? 

It’s not uncommon for interest rates to adjust during the process of buying a home. A rate lock allows you to keep the same interest rate throughout the home buying process, regardless of changes in the market. If you currently have a low interest rate, you can ask your mortgage lender to lock your rate, so you don’t have to worry about spikes in the market. 

Butler Mortgage: The Right Answer to Your Loan Questions

For over 25 years, Butler Mortgage has been working hard to find the best loan programs for both new and experienced home buyers in Central Florida. We can help answer all of your questions and determine the best loan for you. Call us today at 407-931-3800 to schedule your free consultation.  

Buying a home is an exciting milestone in anyone’s life. As a homeowner, you are free to decorate your home as you wish and are no longer tied to any rental obligations. However, when it comes to financing a home, there are many factors at play that can affect the interest rate you obtain on a loan. While there are many determinants, here are three factors that can impact home loan rates.

1. Loan Program

There are numerous mortgage loan programs such as Conventional, FHA, VA, and USDA loans. Depending on investor’s appetites for specific loans, rates can rise or fall throughout the year. There are times when Conventional interest rates are more attractive than FHA rates, but that scenario is flipped at other times. Things like the stock market, consumer confidence, housing starts, and even unforeseen events like the pandemic all play an integral role in the interest rates affecting homebuyers and refinancers.

2. Property Type and Occupancy

The type of property you intend to purchase can have an impact on interest rates. For example, the rates for mobile homes or condos may be higher than for single family, detached homes. Whether you plan to live in the home as your primary residence or not can also affect your rate. The rates for rental properties can be significantly higher than rates for primary residences since they are seen as a higher risk class. Second homes (or vacation homes) typically have the same rates as for primary residences, but require a higher down payment.

3. Credit Scores

Credit scores can also affect the price you pay for loan rates. Lenders pay close attention to your credit history and your credit scores are a good indication of whether you will repay your loan or not. If they believe, based on your credit history, that you can pay your loans, they will be able to obtain lower loan rates for you. If you feel as if your credit score is low, there are several ways to improve this. Consult with your lender to find ways to boost your scores before locking in an interest rate.

Lock in at a Low Rate

Although these are just a few factors, there are other variables that can affect loan rates. One solution that will limit uncertainty is to lock your rates while they are low. Once you have a contract for a new home or decide to refinance your existing loan, speak with your lender about locking right away.

Right now, we are experiencing historically low rates. If you are looking to buy a home or refinance your existing one, rely on the experienced professionals at Butler Mortgage. With over 25 years helping buyers finance homes, we can help you find the right loan solution for your needs. To learn more, call us today at 407-931-3800 or fill out our free consultation form online.

Whether you’re looking to buy your first home, or you consider yourself a seasoned investor, finding the perfect property is always an exciting experience. Oftentimes, your first visit to a potential new property comes in the form of an open house. 

An incredibly valuable and insightful experience, open houses can provide you with an inside look into your prospective new home and give you some ideas as to the property’s potential and what your neighborhood might be like. However, your goal during an open house is to conduct a thorough inspection of the property in order to uncover any potential issues. Here are four warning signs to look out for when inspecting a home during an open house.

Faulty Lights

Testing the lights goes beyond simply flipping switches and seeing if they work. Of course, those are the basics of electrical work, but there are other factors to look out for. For example, make sure that turning on the lights doesn’t make another light fade or hurt the workings of an appliance. Quality electrical work will ensure that you and your family are safe, physically and financially.

Weak Roof

Although the roof may look healthy from the outside, ask the agent about its age and if there are any past roofing issues that you should be aware of. If there have been numerous repairs, that may be an indication that the roof needs replacing. Also ask if the current owner has gotten a wind mitigation report. This report will tell you the quality of the roofing materials, the quality of the installation, and could possibly give you a discount on your homeowner’s insurance.

Smelly Interior

It may seem like an odd thing to do but smelling the house can help you identify strange odors and determine whether something is right, or terribly wrong. Odors of mildew can mean that the house has mold, while a musty smell can indicate that the house is dirty or has not been properly maintained. Some of these smells can point toward water damage, mold, or other hazardous problems in the home. Taking note of these issues and the smells that go along with them can mean you are more well-prepared for what the home has in store.

Empty Neighborhood

When attending an open house, the home is not the only residence you should be examining. Be sure to check the neighborhood for warning signs. Does the neighborhood look clean and safe? Does it appear friendly and outgoing or is there no one around? Check how many homes in the neighborhood are for sale. Too many homes for sale may mean the area is not a desirable place to live. 

Checking for these factors at an open house will help you make an informed decision when in the process of purchasing a new home. 

Find the Right Mortgage for You

When financing your new Central Florida home, it is important that you find a lender that offers affordable loan options. The professionals at Butler Mortgage will work to find a loan solution that meets your needs. Call us today at 407-931-3800 or fill out our free consultation form online.

While many states are navigating various reopening phases to resume operations suspended during the novel coronavirus pandemic, the road to economic recovery in America is looking to be long and challenging. With the unemployment rate in the United States at its highest rate since the Great Depression, millions of people who have been left with no steady source of income are forced to choose between affording basic necessities such as food and rent.

To help those who have experienced financial setbacks due to the coronavirus pandemic, the government has enacted the CARES Act designed to provide financial relief options to those currently struggling to make rent and mortgage payments on time.

How the CARES Act Helps

The CARES Act, or the Coronavirus Aid, Relief, and Economic Security Act, is the latest effort by the federal government to mitigate the negative financial impacts that have resulted from the pandemic. This act in particular is designed to shield those who are making payments toward mortgages that are subsidized by the federal government.

The act includes two primary forms of defense for homeowners:

1. For the first 60 days following March 18, 2020, lenders were unable to enact foreclosures or judgments pertaining to foreclosures.
2. Forbearances can be requested by homeowners from lenders to provide an extension on deadlines for payments. These extensions can last from one to 180 days. Another extension can be requested that includes the same previously mentioned range of delay.

What Is Forbearance?

Often a common request made by those who currently do not have enough money to make payments, forbearance is an option that allows you to make lower payments (or no payments at all) if your lender agrees to the request.  Things to consider when discussing forbearance with your lender:

1. The length of the forbearance period
2. The amount of the payment required during the forbearance period
3. Whether the lender will report the forbearance to the credit bureaus
4. How you will repay the lender once the forbearance period ends

Federally-Subsidized Mortgages

The CARES Act applies to the following federally subsidized mortgage loans:

1. Freddie Mac

2. Fannie Mae

3. VA

4. FHA

5. USDA

Even if you are not making payments toward federally subsidized loans, forbearance opportunities may still be available. The best way to learn about your options is to contact your mortgage lender directly.

A Mortgage Lender Who Cares

Since having a mortgage in forbearance can be an obstacle when refinancing a current mortgage or trying to purchase a new home, it is important to seek guidance from a mortgage professional who can help you avoid potential issues. For homeowners in the Central Florida area looking for mortgage management assistance as a result of the coronavirus pandemic, Butler Mortgage is here to help. For over 25 years, we have been dedicated to providing valuable guidance and advice related to mortgage lending needs for all of our clients. For more information about personalized mortgage loan solutions and forbearance information, call us at 407-931-3800 or fill out our free consultation form online.

 

For many homeowners, being able to pay off your mortgage early sounds like a great idea. It’s likely one of the costliest payments you have to make each month and the idea of being able to save on interest payments can surely be attractive. In some cases, it can have profoundly positive financial and psychological effects for the homeowner. However, there are some disadvantages when it comes to paying off your mortgage prematurely, so it is important to do your homework before making such an important decision.

Less Available Resources

Most homeowners have other financial goals, like paying for house remodels, a new car, college tuition, a daughter’s wedding, or a vacation or two. If your extra money goes to paying off your mortgage, it’ll make it a lot harder to save for such things. Even without these extra financial goals, there’s always an unfortunate chance that you will experience an unexpected emergency that could take a good chunk of change from your pockets and may even go beyond your savings. It’s much easier to pay off these emergency expenses if you’ve created a cash reserve to fall back on, so you may want to consider putting aside an extra cushion if you do decide to pay off your mortgage early.

Fewer Tax Breaks

Another disadvantage of paying off your mortgage early is a reduction in the tax breaks you’re able to receive. Although the mortgage interest tax deduction was reduced back in 2017, you can still deduct interest on up to $750,000 of mortgage debt if you itemize your taxes. If you began your mortgage prior to 2018, your limit is even higher, at $1 million. If you are a homeowner that does not currently itemize, your income is still likely to grow over time — offering you a chance for deduction in the future.

Fewer Investment Potentials

If you put part of your income into investments, you may not want to pay off your mortgage early. Depending on how you invest and how the market is doing, there’s a chance that you could make additional money that would surpass the amount you would have saved on interest payments from paying off your mortgage early.

Make the Right Call Regarding Your Mortgage

Butler Mortgage wants to be your Mortgage Advisor for life. We would be happy to discuss the merits of paying off your mortgage early. With over 25 years of experience, we’ve worked with buyers of all kinds and experience levels to help make the right financial decisions regarding homeownership. To discuss your financial options or find the mortgage that’s right for you, call 407-931-3800 today or fill out our free consultation form online.

When looking to increase home value, homeowners are often inundated by gimmicks and trends that ultimately do not produce a definitive effect on value. However, good old-fashioned home remodeling and renovation has remained the best solution to increase a home’s value. Whether you choose to replace your garage door or redo your kitchen, these changes can not only make your home look nicer but can also boost its value. Furthermore, there are loans you can apply for to help you cover the costs.

The Benefits of Remodeling

Remodeling your home may seem like a daunting task, but in fact, it can provide a host of benefits for your finances. For one, a home renovation will grant you more home value and, with that, more home equity. If you were to sell your home, you would be guaranteed a higher return on investment and if you choose instead to refinance your loan, you will have more options available to you, which may include the removal of mortgage insurance from your payment amount.

Other benefits to remodeling include designing your home as you wish. There are plenty of options to make your home your own, with beautiful decorations and durable structures, like updated doors and windows. When choosing these features, you may also have the option to use energy-efficient building materials that will help you save on utility bills.

Top 5 Renovations to Increase Home Value

These common home renovations average the best return on investment:

• Garage door replacement
• Manufactured stone veneer or anything that improves the curb appeal of your home
• Kitchen remodel
• Bathroom remodel
• Wooden deck addition
• Siding replacement

Analyzing how these renovations affect your home value will allow you to make educated decisions on what remodels you should be spending your time and money on. If you need assistance paying for such renovations, you can reach out to a local mortgage lender to find a loan that can help shoulder the cost.

Home Remodeling Loans

Here are a few loans that can assist you with your home value-boosting remodeling work.

• • CHOICERenovation® Loans – Freddie Mac’s CHOICERenovation® Loans allow funding for homeowners looking to make home value boosting upgrades and improvements that will help their home withstand natural disasters
  • FHA 203(k) –This loan can be a single, long-term adjustable-rate mortgage or a 15-, 20-, 25-, or 30-year fixed-rate term.
  • HomeStyle® Renovation Loans – Available in adjustable-rate as well as 15- and 30-year fixed-rate, these mortgages from Fannie Mae may be used for a variety of home improvements such as swimming pool installations. 

Quality Advice

When it comes to financial assistance to renovate your home, rely on the quality advice from the professionals at Butler Mortgage. With over 25 years lending experience in the Central Florida area, we can help you with financing renovations that will positively impact the value your home. Contact us today at 407-931-3800 or fill out our free consultation form online.