I would like to take over payments on my brother’s house. The interest rate is a little bit lower than I can get now. Plus, it would help him out. Can I just put my name on the loan?
The short answer is no: No mortgage allows you to just put a new name on the loan.
What you are asking about is called assuming a mortgage and it can be a more complicated matter than you might expect.
First, all conventional mortgages are not assumable. They require that the loan be paid on sale or transfer. So, in this case, you would need to get a loan and buy in the usual way.
If your brother has one of these three loans, it might be a good deal. It is at least possible that you could benefit from the lower interest rate and have lower costs. In addition, the loan would have a shorter term since your brother has already been paying on it.
If the loan is assumable, remember you would have to qualify for the loan. Your credit score, income, debt, and employment history must meet the criteria of the lender.
Sometimes even if the loan is assumable and you qualify, it might not be the best choice.
For example, if the loan is a VA loan, the veteran’s entitlement stays with the loan. If your brother wishes to buy another house, he won’t get the whole entitlement on his new house.
Lenders usually see mortgage assumptions in the case of divorce, family gifts, or estate planning. But assuming a mortgage is not always possible and may not be the best way to go.
Should you invest in senior housing?
Senior citizens are the fastest growing segment of our society. Fifteen percent of Americans are currently 65 years or older, and that percentage is expected to rise to 24 percent by 2060. As a result of these demographics, many investors are cashing in on the rapidly growing elderly population by investing in senior housing.
Senior housing is a hot commodity on the commercial real estate market. With more and more baby boomers retiring every day, there’s a growing demand for housing options to meet their needs as they age. In addition to nursing homes and assisted living facilities, developers are increasingly building independent senior living communities and memory care centers for people living with dementia.
There are different ways to invest in the senior housing sector. You can purchase a unit in a senior living facility and rent it out until you’re ready to live in it yourself. Or, there are Real Estate Investment Trusts (REITs) that focus on the senior housing market. When choosing an REIT, make sure to select one with a diverse portfolio that includes many types of senior housing developments (independent living, assisted living, memory care, skilled nursing, etc.).
If you’re looking for real estate investment options, senior housing is a good way to take advantage of demographic trends while investing in infrastructure you’ll need when you reach your golden years.
Granny pods: the newest trend in senior living
There’s a new trend emerging in senior housing: granny pods. Also known as tiny homes for seniors, granny pods are compact, prefabricated houses that can be assembled in the backyard of a caregiver’s home.
Although the idea of granny annexes or granny flats has been around for decades in the U.K. and in Australia, the first senior-friendly tiny homes in North America were called MEDCottages and launched by a small Virginia company in 2010. Since then, the idea has gained popularity and been adopted by other companies across the U.S. and Canada.
In general, granny pods include an open space containing a bed, living area, kitchenette and bathroom. They’re completely accessible to elderly people with health and mobility problems as they’re equipped with hand railings, defibrillators, first aid supplies, cushioned floors, good lighting, wheelchair-accessible doorways and a monitoring system (so that caregivers can keep an eye on the resident).
Many seniors and their loved ones see granny pods as an excellent way to downsize after retirement and a welcome alternative to nursing homes. These tiny homes allow seniors to continue living independently while receiving the care they need. It also lets families stay together without having to sacrifice space and privacy by living under one roof.
Why overpricing your home could be a costly mistake
Listing your house for a price that’s above its market value is rarely a good idea. Here are three ways overpricing your home can backfire.
1. It scares off potential buyers.
Many buyers will never see your home if your price is too high. Real estate agents won’t bother bringing clients to see your house if they think they have no chance of selling it, and your property won’t show up in online searches if the price is outside the desired range of most buyers.
2. The listing stays up for too long.
3. Buyers may have trouble financing the purchase.
Even if you do find interested buyers, they may not get the loan they need for the mortgage if the appraisal shows your home is worth less than the selling price. Under these circumstances, the buyers may not be able to go through with the sale.
Before putting your house on the market, have your agent do a comparative market analysis of your property and use the results as a basis for your asking price.
Warren County Market Report – April 2019
Watch this video for a quick summary of Warren County real estate for April 2019. Charts demonstrate the changes in the market, so be sure to click play!
In general summary:
- Closed sales are UP by 18% compared to this time last year
- Average Median Sold $250,000.
- Average Days on Market 84.
*If you would like a copy of this report emailed to you, please send request to Jennifer@nexthomerealtyselect.com.
Resource: 2019 Market Stats by ShowingTime
MRIS: Statistics calculated May 2019
Jennifer Avery, Realtor for NextHome Realty Select
BPOR, SRS, CNE, E-Pro Certified | Licensed in VA
email@example.com | 540-683-0790
210 E Main Street, Front Royal VA
Interior designer vs. interior decorator: what’s the difference?
You’ve probably heard the terms interior designer and interior decorator used interchangeably. However, they actually describe two different but similar professions.
Interior designers complete two- or four-year degree programs that involve studying subjects like color theory, architecture, computer-aided design and spatial planning.
They work with architects and contractors to plan and renovate spaces and can be involved in every step of the remodeling process, from drawing up floor plans to adding the final touches.
Interior decorators focus on esthetics. They help transform spaces that are already built by making recommendations about paint colors, furniture styles, lighting and accessories. They’re not required to complete professional training (though many decorators do), and they usually work directly with businesses and homeowners.
Should I hire a designer or a decorator?
If you need help with designs during a renovation, it’s best to go with an interior designer. They’ll help you create a space that serves your specific needs and aligns with your particular tastes. However, if you’re mainly looking to update the appearance of a space, a decorator can help you achieve a whole new look by rearranging and redecorating.
In the end, what matters most is not the job title, but the skills of the designer or decorator in question. Choose a company or professional with a reputation for high-quality designs and expertise in the type of work you’re looking for.
Common new homeowner mistakes to avoid
Now that the papers are signed and you’ve finally moved into your new home, it’s time to think about the responsibilities that come with owning property. Here are three mistakes to avoid when you first become a homeowner.
1. Ignoring maintenance and repairs. When you’ve rented for a long time, you may not realize all the work that goes into property upkeep. Be sure to stay on top of routine maintenance tasks — checking smoke alarms, changing furnace filters, inspecting the roof, etc. — from the moment you move in.
2. Making changes too quickly. Give yourself time to get used to your new home before making major renovations or even smaller alterations like painting the walls or redoing the floors. Living in the space will help you figure out what changes need to happen to make it feel more like a home.
3. Taking on repairs yourself. Don’t DIY repairs and renovations that you don’t have professional experience with. Trying to do major repairs on your own — especially ones that involve pipes or wires — can have disastrous results.
Avoiding these pitfalls will help you get the most out of your new house and prevent many headaches down the road.