May marks the leading edge
of summer, the end of school, and the blooming of gardens. We get to
celebrate Mothers Day, Cinco de Mayo, Victoria Day (CA), and Memorial
Day (US). It's also the peak of the real estate season, so call me if
you'd like to pluck a new home, plant some new roots, or grow your real
estate dreams. Too corny? Call anyway! ~Mardin, (408) 210-2073
Ready, Set, Ghost Town Road Trip!
Like road trips? Like old, abandoned
buildings? Like history? Why not combine them into a ghost town road
trip? Search online for ghost towns in your area, then do a little
research to make sure they're still accessible. Learn the story, then
map out your trip, including accommodations or campgrounds. See these
Wikipedia resources for more info: Ghost towns in the US. | Ghost towns in Canada.
Do 40 Year Mortgages Make Any Sense?
Mortgage amortization (pay-back) periods are getting longer. Typical
mortgage pay-back periods are between 15 and 30 years. But in response
to higher real estate prices, lenders have been providing longer
mortgages, in some cases up to 40 years.
But, should you get the longest mortgage
pay-back period possible? What are the pros and cons of that? Have a
look at the chart above, which shows an example of what happens with
different mortgage lengths. The figures are based on a purchase price of $408,100 with 20% down, for a loan of $326,480 (data from MarketWatch.com).
PROS: If you get a longer mortgage, you may qualify to
buy a higher-priced home, which makes sense if you absolutely must
purchase at a higher price. It also makes a bit more sense if you plan
to keep the home at least 10 years. Also, with rates rising, the top
interest rate for a longer mortgage today may be lower than the rate for
a shorter mortgage in the future (but that's not a certainty).
CONS: Unfortunately, you'll pay more for that home,
because you'll pay a higher interest rate for the "privilege" of the
longer loan.You'll be paying for many years longer before you get to be
"free and clear." And if you want to sell within 10 years (a typical
period of ownership for young adults), you'll have less equity, and may
even be upside down if home prices fall significantly. It often (but not
always) makes better financial sense to get the shortest loan you can.
What can you do instead of getting a longer mortgage? Buy
a cheaper property, save a higher down payment, buy an investment
property in a different location, or co-borrow/co-buy with someone (a
parent?) so you qualify for a shorter mortgage. Let me know if I can
help. Mardin, (408) 210-2073
May Quiz Question
If seven adults can eat seven cupcakes in seven minutes, how long would it take 30 adults to eat 30 cupcakes?
Send your answer for a chance to win a $5 COFFEE CARD. Last month's Q&A:Before Mt Everest was discovered, what was the highest mountain on earth? Mt. Everest. Congratulations to last month's winner!
The Not-TV, a product that lives up to it's hype
I recently complimented a friend who had displayed a beautiful painting
on one wall. She grinned and changed the image. Turns out it was a TV
screen that was cleverly designed with an edge-to-edge matte frame that
looked exactly like a painting. Designed to display a static artistic
image when not in use as a TV, it's the perfect accent for anyone who
hates that ugly black square ruining the vibe of their living room. Look
it up online: The Frame TV by Samsung.
Worried about Your Neighbor's Tree Falling on Your Home?
When buying a house with gorgeous trees, don't forget to factor in the
annual cost to maintain those trees. But what about when you own a home
next door to someone who isn't maintaining their trees? What if you fear
damage to your home or injury to your family? In that case, you need to
take matters into your own hands. Read more from Kiplinger.
Why Is Charred Meat Carcinogenic?
You may not know this, but certain foods can release carcinogens when
cooked or heated to high temperatures. Meat is one of those foods,
especially when char-grilled. Also tobacco and yerba matte tea. How much
do you need to consume for cancer to occur? As we know from many
decades smoking research, cancer can occur more or less quickly, or not
at all. The assumption is that if you consume a lot of these foods in
their heated form, you're raising your cancer risk. Love your steak well
done? Read more here.
Manage Your Money: Create an ICE Folder
You owe it to the people you love to put together a folder of
information that will help them figure out how to handle your finances
in case anything happens to you. This is your “In Case of Emergency,” or
ICE, folder. Include all the information someone would need to manage
your finances, such as account numbers, login IDs and passwords, a list
of bills you pay each month, investment and retirement account details,
etc. Secure this folder, and make sure loved ones know how to access it.
Triskaidekaphobics Beware!
Triskaidekaphobia is the fear of the number 13. This superstition has
been around for a long time and has led to interesting practices such as
skipping the number 13 in elevators and street numbers such as 13th
Street. Also, there's the bad luck associated with Friday the 13th (May 13 this year, by the way).
In case you think that's a modern invention, references to Friday as a
day associated with ill luck first appeared around the middle of the
17th century.
Which part of the house is MOST important to you when house-hunting?
