Real Estate Investing

Real Estate Agent with Execuhome Realty

Local real estate markets are declining all over the country. Homeowners are scared, and they are wondering how they can protect themselves and their homes. You may also feel the same. Fortunately, there are several things that you can do to protect yourself and your real estate investments in the current market.

The first thing that you should do to protect your assets and your home is to see what the current value of your home really is. Start at the county auditor's office. Ask to see your tax card which will tell you the value that the city has listed for your home. Take this number and compare it with sales prices of similar homes in your neighborhood. If you are paying taxes on a value that is above current market values, you should take measures to reduce your tax debt.

In today's market, it is not uncommon for homeowners to pay more taxes than they should due to the decreased value of their home. If you feel that this is true in your case, you should have your home appraised.

If you have an adjustable interest rate on your mortgage, you might want to consider refinancing to obtain a fixed rate. Be sure to pay attention to all of the details. Many loans will require you to pay a penalty if you pay them off early. You will have to consider the cost of penalties when you apply for a new mortgage. If you have any questions, your mortgage broker will be able to help you.

If you find that you owe more on your home than it appraises for, it may be feasible to cut your losses and get out of the situation. However, keep in mind that prices are expected to stabilize and begin to rise next year. But it could take quite some time for the value of your home to surpass the amount that you owe on it.

You should also take into consideration how long you want to live in your home. If you plan to sell your home in a few years, you might not be able to recoup the amount of money that you spend for closing costs with the interest that you save. Beware of no closing cost loans. These loans usually finance your closing costs in with the loan which means that you will pay interest payments on your closing costs.

Always make sure that your homeowner's insurance is up to date. Insurance will protect your home in the event of fire or natural disaster. If your home has increased or decreased in value, your policy should reflect this. The goal of insurance is to put you back into the same home or position that you were before the disaster occurred. Not having adequate insurance could cost you if something happens to your home. On the other hand, paying payments on more insurance than you need can cost you as well.

Posted by

David Clark & The Think Clark Team

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