Homeowning - Personal Finance Tips at Catch a Gideon

December 13th, 2006 by digerati

Upgrade your old bathrooms and kitchens. These are often selling points on a house. A modernized bathroom can provide over a 100% return, while a modernized kitchen can return about 90%.
Refinance your mortgage if you can cut at least one point. The costs of refinancing are considerable, so it should only be done if you can trim your interest rate by at least 1%.
Never spend more than 2 1/2 times your income on a home. Know what you can afford and what you cannot.
Put at least 20% down on a home. Making a down payment of less than 20% will usually result in a private mortgage insurance (PMI) fee being added. This is usually 0.5%, meaning it could cost you about $1,000 a year on a $200,000 principal.
Use a mortgage broker. The better your mortgage, the more you’ll save. Shop around.
Investigate different types of mortgages. There are dozens of mortgage options out there. Find the one that suits you best.
Buy a house that needs repairs. Buy for cheap and then add to the value with repairs. You’ll save money
Deal directly with the seller. Avoiding agents’ fees is a good thing. If you do decide to hire an agent, do your homework and get one who will be on the same page as you. You should be the one calling the shots.
Find out about homeowner taxes. Know what the property tax is in your area and be prepared to have enough to pay it.
Find out about secondary costs. In addition to monthly payments, be prepared to incur some secondary costs, including repairs, notary, escrow fees, and title insurance.
Get the house inspected by a professional. Have the house thoroughly inspected before making an offer.
Negotiate the selling price. Home prices are almost always negotiable. Never offer the asking price, but rather a few percentage points below it.