Ways to Build Home Equity

Cheap Fixes to Improve Home Equity

There are many ways for homeowners to build equity. From making bigger payments to refinancing, the options to add equity to your investment are numerous. Home improvements can range from very inexpensive, to quite costly. In this article, we outline some easy ways to increase the equity of your home without breaking the bank. For some great remodeling ideas for your home, check out The Housing Hour's special on Home Remodeling Ideas.

Add Storage Space to Your Home

Nowadays, even homes in warmer climates have basements, mostly reserved for recreation or storage. One way to up the value and functionality of your home is to spruce up the basement. A common solution to this is to make the basement look like the rest of the home. Get a seamless look by using the same paint and finish on your basement walls. Or, convert your basement into a massive space for functional storage. Look into professional closet organizers who custom build closets and shelving.

Adding functional storage to a previously unused space can add value to your home. Basements are full of storage potential. Basements may not be standard on homes in wet climates, but in the Midwest, where houses are subject to tornado activity, they are quite common. Historically, basements have had the simple purpose of refuge in the case of emergencies. Check out The Housing Hour's special series, Protect Your Kids to learn more about what you can do to protect your family in case of an emergency.

Add Curb Appeal to Your Home

Making a great first impression instantly changes the way people feel about your home. Having a nice landscape, a beautiful paint job and a well-manicured yard can instantly increase curb appeal to your home. It may not sound like much, but keeping your home looking nice is contagious, and it adds to the overall value of the neighborhood.

If you don’t have the best landscaping skills, consider hiring professionals to maintain your yard. There are many ways to increase the curb appeal of your house. Routine painting, or a few well-placed plants can make all the difference when it comes to curb appeal. Please download or stream the following episode of The Housing Hour for more information on home values and the importance of owning a home from the Homeownership Matters series.

Flooring Solutions

Getting new carpet is a very inexpensive way to update your home and make it look clean. Consider getting neutral colors or stain resistant carpeting. If your carpet is looking worn down, especially in high traffic areas, think about getting rugs to place over them in between carpeting. Installing hardwood floors or tiles may be an expensive, yet worthy investment. There many high quality laminates available that are just as good if not better than traditional wood flooring that you can install to increase the value of your home.

This week The Housing Hour's guest is Steve Kleber. Steve is the president of the National Remodeling Foundation, promoting excellence in the field and providing support to younger generations entering it. He is the immediate past president of the National Kitchen & Bath Association’s Center for Kitchen and Bath Education and Research, a non-profit foundation created for the purpose of educating and cultivating future leaders in the kitchen and bath industry.

For great ideas, interviews and stimulating food for thought on all things home-related, feel free to browse through all of The Housing Hour's Special Series.

Save Energy With a Heat Pump

Conserving Energy

By building energy efficient home systems homeowners can conserve energy to reduce on utility costs, increase the value of their home, and help the environment. Making your home more energy efficient can pay off in more ways than one. One thing you can do to reduce costs and increase efficiency is install a heat pump. Heat pumps can offer energy efficient solutions for your heating and cooling needs, and can outperform most traditional heating or air conditioning systems. Listen below to hear The Housing Hour's podcast on heating and air from their energy efficiency series.

How Heat Pumps Work

Heat pumps don’t work like traditional heating systems that convert electricity into heat. Instead, it
retains heat and warmth from the environment, multiplies it, and transfers it to the home. During hotter weather, the pump functions as an air conditioner. It moves heat away from the house, or out of the air,creating a cooling effect. There are many reasons to install energy star components in your home. Stream or download this podcast from The Housing Hour on Energy Star components for your home.

Heat Pumps for Heating

As the name suggests, heat pumps are great for heating and providing warmth. They can quickly and efficiently increase the temperature of the room. Efficiency is the key when it comes to heat pumps. If you put your heat pump on “reverse cycle,” it will then act as a refrigerant, cooling the air in the same fashion as a refrigerator does.

Heat Pumps for Cooling

As mentioned, the “reverse cycle” can make the heat pump work backwards. When you heat pump
works in reverse, it is extracting heat from your home, and pumping it outside. This is exactly how a
fridge works, by using sound waves to condition the air adjacent to the pump. Commonly, this is known as air conditioning.

Heat Pumps Control the Climate

With a heat pump, you are the one who controls the weather in your house. Most people are
comfortable living within a certain range of temperatures, but with a heat pump you don’t have to live within that range. Theoretically, you could turn up the air in the summer just to light a fire, although we don’t recommend it. With a quality heat pump, you can easily control the climate of your house to make it more comfortable. For more ideas on home energy solutions, stream or download more of the podcasts from The Housing Hour's special series on energy efficiency.

3 Keys to Buying a Home

Buying Real Estate

Millennial home buyers are shifting from renting to buying real estate in 2015. Many turned to renting after the housing bubble popped in 2009. As many Millennials attitudes toward buying homes cooled considerably immediately following the housing crisis, the demand for rent became higher than ever. This demand drove rental prices and the cost of living expenses up in major cities across America. 

Also at that time, banks were reluctant to offer low or no down payment mortgages. This left many home buyers with less cash on hand, and few options for securing a loan. However, in the last few years, the real estate market has been stabilizing and new mortgage loan products have made owning a home affordable again.

Lenders have loosened requirements for applicants, and many people are taking advantages of government insured loan programs. Now more than ever, people are re-examining the benefits of owning a home. Following are 3 things you can do before buying a home that can help you find your road to real estate success. 

Find the Right Real Estate Agent

Never underestimate what it means to have the right real estate agent in your corner. Don’t just settle for the first real estate agent that you find. If you are not completely comfortable with any part of the process, make sure that it is addressed. You will want to find an agent who is experienced, can explain all the finer points of contracts or any other information you need to know in order to make your purchase go as smoothly as possible. You will be spending quite a bit of time with this person, so you should pick an agent that you like. It’s important to choose someone you have a good rapport with. I certainly would be happy to refer you to the right Realtor or you can search online for real estate agents. 

Get Pre-Qualified For a Loan

You should know your credit score, and get pre-qualified before you start shopping for a home. Most home buyers can afford more than they want to spend on mortgage payments, insurance payments, and property taxes. It’s best to find out what you can afford, and work back from there. Getting pre-qualified is simple. You will work with a mortgage lender who will help you find out what you can afford. Don’t rely solely on online calculators to do the math for you. Make sure you contact a qualified professional mortgage lender that can guide you in the right direction.

Make a Checklist 

Make a list of all the features and amenities you want from a home. Make sure you are realistic about space, location and your budget. Have two lists. Make one list of the bare necessities, and another for everything you’d like to have. There are sometimes tradeoffs that you will have to make, like more space vs proximity to restaurants and shopping destinations. With clear goals of what you want to look for when shopping for a home, you can really help yourself narrow down the options. Please check out ALL of The Housing Hour's specials on Loan Programs.    

Finance Your Home Remodel

Remodeling Your Home

Remodeling your home can be exciting, as well as intimidating.  Improving your home can help you enjoy life more while you passively build equity. From kitchen cabinets to closet doors, there are many different remodeling projects that can add to the value of your home. These projects can be very cost effective or cost quite a lot.

This article offers some tips for financing your remodel. Whether you want to create more space, update your appliances, make your home more energy efficient, build a home office or add a personal touch; there are endless ideas to choose from. To learn more about home values and how you can get the best appraisal, check out The Housing Hour's special on home values with appraiser Tom White.

Remodel Your Home With Equity

There are many different loan programs that allow you to use the equity in your home, to remodel your home. Sounds nice doesn’t it? Whether you hire someone or do the work yourself, you will need to accurately predict the price of the project. Before you get a loan, you will need a specific figure to give to lenders.

The amount of money you can borrow will depend on your credit rating, income and your loan to value ratio, also known as the LTV (Loan To Value). The LTV is a percentage of the lien compared to the appraisal value of the home. Usually, cash out refinances have a max LTV of 80%.  For a $200,000 home, that would be approximately $160,000.

Here is an example:

If your mortgage balance is $40,000 and your home appraises for $200,000, the most you can borrow would be $160,000.  The first $40,000 of the new loan would go to pay off the balance and the additional money would go towards paying your closing cost and your home improvements.

If you have an excellent credit rating, you might get a higher LTV than 80%. Conversely, if you have a less than perfect credit rating you may get a loan with a lower LTV.  Contact MIG for more information and talk to a mortgage advisor near you. 

Listen to this episode of The Housing Hour with Eddie Hops from Cabinet Conversions of Tennessee to get some great ideas for you home renovation.

Remodel Without Using Equity

There are lots of ways to add value to a home without spending a lot. You can still remodel your home without dipping into the equity. You could pay with your savings, and even opt for cheaper fixes. Making regular improvements on your home out of pocket can add value to your investment. This can help you take out lines of credit in the future. Clean out your attic! You may be surprised on how much you can make from a garage sale. Clean out space and get cash to put back into your home, or your pocket. To learn more about the housing market and home values, visit The Housing Hour’s editorial section on their website. 

USDA Rural Housing Loans

USDA Rural Loans

Do you know what a USDA rural loan is? FYI, if you aren’t familiar with the term, it has nothing to do with high quality beef. USDA rural loans help moderate to low income individuals buy homes, with 100% financing and NO down payment. You don’t need to farm or raise livestock for a living to get one of these home loans. In all seriousness, USDA rural loans are mortgages backed by the US Department of Agriculture that often apply to areas that aren't so rural at all. Many people are obtaining USDA loans in neighborhoods that are considered suburban.

Invest in Your Future

These loans were designed to bring strength and capitol to rural communities by offering loans, grants and loan guarantees that support economic and social development. USDA rural programs are responsible for millions of dollars of loans, creating jobs and wealth for communities across America. Right now, mortgage rates are very low, and with a USDA rural loan they’ll get even lower. Click here for to see a list of all the Housing Hour’s podcasts on Loan Programs.

Single Family Direct Loans

To obtain a single family direct loan, the applicant must meet the minimum income requirements for the area in which they wish to purchase a home. Household income cannot be more that 115% of the median income for that area. Lenders will also look at your debt-to-income ratio when determining your eligibility.

With single family direct loans, many Americans who never thought they could afford a loans, are buying their own homes. This is fortunate for families with limited income or tight budgets. If you plan on working and taking care of your family, these loans can help you to quickly build equity and credit. Home improvements and additions can put money back into your pocket as well. Check out the Protect Your Family Series from the Housing Hour to get more ideas and tips on protecting your loved ones.

These loans apply to small towns only, with a population of less than 20,000 people. The buyer must also be using the property as primary residence, and have a good credit rating. In many cases renting can cost hundreds of dollars more than making payments on your own home. This is good news for families that qualify for FHA mortgages, but cannot cover the cost of the down payment.

Give this episode of the Housing Hour a listen for expert advice and information on USDA loans.

A True Irish Saint, Frank P. Callaghan

Francis P. Callaghan

On March 17, 1978 this country lost a great American. Only two years old at the time, I am not fortunate enough to remember his voice or his touch, but his legacy has spoken to me and touched me in many ways.  This man was my Grandfather, my "Dedaddy",  Frank P. Callaghan. He served his community with a passion and a desire to change lives. He had a real concern for the people who were less fortunate. He helped many, with nothing expected in return. 

His career with the United States Government is decorated with many awards and recognitions. He entered federal service in 1940 with the Immigration and Naturalization Service. He then served in the Intelligence division of the Manhattan Engineering District in 1943 and later was selected as the Director of Security of the Oak Ridge Operations in the early 1950’s. In 1957, he took part in a security review of four NATO countries in Europe. He also helped to complete a bilateral agreement with the United States for information exchange between countries. He was awarded the Superior Service Award in 1958. In 1971, he was the Atomic Energy Commission’s representative in a joint project with the Department of Defense. The project's goal was to revise how our government handled classified documents. 

During his career, he was an outstanding employee and an incredible asset to the intelligence community. After talking to one of his friends recently, he certainly loved what he did, but felt his more rewarding work was accomplished in the community. His accomplishments were just as impressive in this area. From writing speeches for the Mayor to helping to start the CONTACT answering service Dedaddy seemed to be involved in every aspect of social concern that there was. In 1968, he even organized a five week seminar called "An Experiment in Social Concern". This was under parish sponsorship at St. Mary’s Church in Oak Ridge. He was one of the founders of the Oak Ridge Civic Ballet Association in 1964 and was one of the early board members of the Oak Ridge Art Center. In 1967, he worked with Leslie Dale, serving as executive chairman of the Oak Ridge 25th committee, a year long celebration of the city's anniversary.  

He served as chairman of the Oak Ridge Housing Authority in 1970 after being vice chair for two years. He rigorously fought for low income housing to be offered in neighborhoods that were not isolated from the rest of the community. Frank Callaghan Tower’s is right next to Emory Valley. A month before Dedaddy died he appeared before City Council to argue for more low income housing in Oak Ridge.  1977, Dedaddy was presented with the Columbus Award by the Oak Ridge Council of the Knights of Columbus. This award was reserved for citizens who showed outstanding community service. He also received an award from the Catholic Bishop of the Nashville diocese. The Governor himself proclaimed October 22 "Frank Callaghan Day".

So with a life full of accomplishments and outstanding community service what else can be said about

Security Check point in Oak Ridge, TN

this noble man? Dedaddy loved his Irish heritage. St. Patrick’s Day is by far a wonderful time for our family to celebrate that. It is no coincidence that my Dedaddy died on St. Patrick’s Day. After all, St. Patrick died on that very day. We named our first son Patrick Callaghan Rhea. In many ways after these two men. Amazingly St. Patrick and my Dedaddy have a lot in common. Serving their Lord and Savior Jesus Christ was their priority. St. Patrick showed incredible social concern as did Frank Callaghan. Today is a day to pay tribute to two great human beings. Separated by over 1500 years in time but brought back together with the blood of Jesus Christ. I look at Dedaddy’s life in wonder. How does one man have time to do all of that? Raising five kids and still able to make time for all of those community involvements. I have one word for that. Memommy. She was a loving wife and mother who did an outstanding job raising five brilliant and loving children. Each has made their mark in their own way on this wonderful Country. She is still a loving mother, grandmother and great grandmother. One thing that I have realized is that Dedaddy was a very special man. Trying to follow in his footsteps is a very daunting task. This man did it all. I have concluded that in God’s time he will show me what else he wants me to do. It starts by being a good person today. It starts by being a good father, husband and son today. A good grandson, cousin, brother, nephew. Those relationships are what are most important. I don’t always wear these hats well. As a matter of fact I fail often. My hope is that I can do better tomorrow.

Thank you Dedaddy, Daddy, Frank, for what you taught us. For that for which you stood. For helping all of us understand that it is not about us. It is much bigger than that. Most importantly, thank you for taking the Great Commission seriously. Let’s go out and make disciples of all nations. Like St. Patrick did. Like Frank Callaghan did. Both only men, but true disciples of Jesus Christ.

In loving memory of my Dedaddy Frank P. Callaghan,

How to get a higher appraisal

Home Appraisal Value

There are numerous reasons why a home appraisal is conducted. You may want to get your home appraised to estimate its value, for the purpose of selling or refinancing. Or maybe you want to find out if you are being charged the proper amount for taxes and insurance premiums based on the value of your home. In most cases a homeowner is hoping for the highest possible appraisal value. This article outlines some ways to prepare your home, and get the highest appraisal possible. To get expert advice and information on real estate, visit the Housing Hour’s website.

Improve Curb Appeal

Curb appeal does more than turn heads of prospective buyers. Your home’s first impression is also important to the appraiser. There are many cost effective ways to increase curb appeal, and add to the market value of your home. Maintaining your yard, planting a garden, keeping shrubs trimmed and having a well-manicured yard are all things that will help with your home’s market value. We’ve only touched upon small portion of this topic. From door treatments to new paint, there are a number of simple things you can do to increase curb appeal for the appraisal.

Compile an Information Packet

Appraisers have access to a number of resources, in which they can obtain information about your house and recently sold homes in the area. This information is usually credible, but can contain mistakes. To help prevent a low appraisal because of errors, put together and information packet for the appraiser. Just a few neatly written pages will suffice. Following are some suggestions on things you can include in the package. To get more information on appraisals and all sorts of other useful home-related topics, visit the Housing Hour's website.

Similar homes in the neighborhood. Supply your appraiser with any information you may have that support reasons why houses in your area sold for the prices they did. If one of your neighbors needed to sell quickly for some reason, and dropped the price, that should be brought to the attention of the appraiser.

Homes sold in the area over the past six months. Homes that sold within the last 6 months, which are located within a one mile radius of your home make the best comparisons. You can print data for homes sold in the area, and make note of anything that may have affected the prices.

Have a sheet detailing why your home deserves a high appraisal. Sometimes the appraiser does not get the most reliable information, and this can lower the value amount of your appraisal. Having a “brag” sheet for the appraiser to refer to can clear up any erroneous information, and help the appraiser see what they might have missed. Here are some suggestions for things you may want to include:

Home improvements such as: new windows, new flooring, refinished countertops etc.
• Any replacement of major heating or cooling system components.
• Include any major improvements or add-ons done to your property. Provide as much documentation as you can about the work that was done.

Listen to this episode of the Housing Hour with residential home appraiser Tom White, to hear more about home appraisals and home values.