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Do the math
Buying a home now may be more affordable and save some cash
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t a time when the strength of the U.S. economy and personal finance is on most renters’ minds, low down payment mortgage options are more appealing than ever. With mortgage interest rates being at historic lows, it is possible to qualify for a home loan while keeping a rainy day fund. â–
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How to protect a coastal property
Many people dream of owning coastal properties. Some aspire to have a home away from home for vacations or long weekends, while others move to the coast to be nearer to family or when they reach retirement age. Living close to the water can be relaxing, and it’s hard to beat the fresh air and the relaxing sound of the waves. However, coastal homes require some unique upkeep that prospective buyers should
familiarize themselves with before buying a property. Salt water Salt buildup is one of the pitfalls of living close to the ocean. Salt is corrosive to metal components, so homeowners are advised to avoid metal parts in various areas of construction on their homes. Windows and doors are particularly at
Planning home improvements?
risk because they face the constant onslaught of Mother Nature. Fiberglass, vinyl and aluminum are less corrosive than other metal parts and should be considered in window framing. Homeowners may need to apply lubricant to moving parts, locks and fasteners to keep them moving smoothly. Consult with a lawn and garden expert about which coastal plants thrive with high levels of salt in the air. Professionals can make recommendations on lowmaintenance landscapes that will not be damaged by the sun and salt. Humidity and salt concentrations also can cause concern indoors. Mold likes damp, dark conditions, so homeowners should do their best to keep their homes dry and well-ventilated. Rely on dehumidifiers to take moisture out of the air. Install more vents to draw air outside and create fresh air flow. Coastal flooding Coastal flooding is another concern for homeowners who live close to the water. Prospective buyers should first determine if the house they want to buy is in a flood zone or an evacuation zone. This is information that may come up when applying for homeowner’s insurance, as flood insurance is a separate policy. Individuals may have to take special
measures to protect their homes from incoming tides or high waters during storms. The National Flood Insurance Program provides a flood damage simulator to predict the total cost of flood repair based on the height of the water. For one to four inches of water, the estimated repair cost is $7,800. For nine to 12 inches, the estimate is $18,930. At 18 inches, the estimated cost is $26,285. Homeowners may want to invest in lifting their homes or taking other preventative measures if coastal flooding is common. Privacy and safety
Living by the ocean can be great, but coastal towns are often a magnet for tourists. Homeowners with seaside homes or homes in popular tourist areas may want to take extra steps to create privacy and security. Fencing and natural windblocks can block the view of backyards and other outdoor spaces. An alarm system can offer peace of mind in areas close to resort towns. Adequate lighting can deter trespassers as well. Living by the ocean is a dream for many people. The increased upkeep required on a coastal home is often a small price to pay for such luxury, but it’s something prospective buyers should consider before buying a home. METRO
RhodyRealEstate ■ Math
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8 0 0 - 4 7 5 - 2 2 6 5 ~ A s k W a s h Tr u s t . c o m Properties must be located in Rhode Island, Massachusetts, or Connecticut. Property insurance is required. All loans subject to credit approval. Account closure fee of $350 for lines up to $500,000 or $500 for lines over $500,000 will apply if line is paid off and the account closed within first three years. Flood insurance where required by law. Washington Trust personal checking account may be required. $10,000 minimum initial draw to third party may be required. Single-family, owner-occupied primary residences or second homes only. Maximum loan-to-value of 80%. NMLS #4147726, Member FDIC.
Private mortgage insurance (MI) has been around for decades and helped over 1.3 million homebuyers last year. It is a temporary cost that allows for a down payment as small as 3% of the purchase price. While some borrowers wait until they save 20% for a down payment, the added years of saving can translate to higher interest rates and more expensive home prices. “Renters who are on the hunt to buy should do the math and consider what is best for them, because many times they will find that buying with a low down payment insured mortgage is in their best interest. It may enable them to attain homeownership sooner than they otherwise could, which helps them take advantage of historic low rates and keep some of their savings intact,” said Lindsey Johnson, President of U.S. Mortgage Insurers (USMI). If you are one of these renters looking to buy your first home but don’t have 20% down, don’t worry, you are not alone. According to the National Association of Realtors, the median down payment in 2019 was 6% for first-time buyers. It is true you can qualify for a conventional mortgage with a down payment as small as 3% of the purchase price. In today’s market, it could take a family earning the national median income up to 21 years
to save 20%, according to calculations by USMI. How can buying now save you money later?
Consider you want to purchase a $275,000 home. When you account for closing costs (about 3% of the sales price), a 5% down payment is $13,750 versus $63,250 in cash for 20% down. With a 740 credit score at today’s MI rates, your monthly MI payment would be about $115, which is added to your monthly mortgage payment until the MI can be cancelled. MI typically cancels after five years. With home price appreciation, today’s $275,000 home will likely cost more in the years ahead. This will also have an impact on the necessary down payment and length of time required to save for it. There are other variables in the equation too, such as interest rates. As interest rates rise, so too will the cost of mortgage financing. Not all MI is the same. Importantly, so-called “FHA Loans” are governmentbacked loans insured by the Federal Housing Administration versus a private insurer. These mortgages require a slightly higher down payment, the insurance is permanent, and the monthly premiums generally cannot be cancelled. Make sure you do the math. There are many online mortgage calculators that can help. Check out lowdownpaymentfacts. org to learn more. (BPT)
Before you buy a home, ask these 5 questions about the roof Ready to make an offer on that perfect piece of real estate? Most homebuyers have a checklist of questions to ask the seller. Questions about the plumbing, heating and AC unit are common. But when searching for that dream home, one of the most important yet overlooked major items is directly overhead and should top the checklist. A roof protects the home from the ravages of sun, wind, rain and other threats. The ability for a roof to provide protection is directly linked to its condition. A roof nearing the end of its service life can be a major investment for any homeowner. Knowing the condition of a home’s roof plays a big part in determining what the overall investment in a new property will be. Here are a few questions to ask before committing to any property. 1. How old is the home’s roof? Ask the homeowner about the age of the roof - and don’t be shy; ask for documentation. Knowing the age of the roof will help you understand issues you may encounter and how to plan to prevent them. It can also influence homeowner insurance costs - and even whether an insurance company will write a new policy on the property, according to insurance. com. Typically, a roof can be expected to last anywhere from 15 to 50 years, depending on the roofing material, the severity of the weather it is exposed to and if it was installed properly. 2. Are there any known damages or repairs to the roof? In most states, a seller must disclose any known home damage or defects to a prospective buyer. By asking about roof damage and repairs specifically, the seller cannot easily forget to mention those details. It is better to get any bad news early and factor the cost of potential repairs into negotiations to avoid devoting time and money toward a property that may have cost-prohibitive issues. 3. When was the roof last inspected? A thorough inspection is important,
RhodyRealEstate even if the roof is new. Wind and hail can cause hidden damage that could dramatically shorten the life of the roof. Impacts from large tree branches can distort or even penetrate roofing material. Small, hard-to-find water leaks can lead to rot and costly structural damage beneath the surface. A professional roofing contractor will provide a comprehensive inspection. They can expertly assess the roof’s condition, inspect often-overlooked areas, identify needed repairs and estimate the roof’s remaining useful life before replacement will be necessary. They will also inspect roof ventilation to ensure it is adequate. The contractor will make sure gutters are
functioning properly and not allowing water to back up into the roofing system.
not necessarily be a deal breaker; there may still be plenty of life left in the roof.
4. Is the roof still covered under warranty? Can that be transferred?
5. Will the seller negotiate a lower price to compensate for an old or damaged roof?
Depending on the manufacturer, the home’s roof may have a warranty that is transferable from one homeowner to the next. Warranties are designed to cover certain manufacturing defects. Ask the seller to provide a copy of the roof warranty and carefully read through the terms and conditions to determine if the warranty can be transferred and what degree of coverage will be provided. If a warranty is not transferable, that should
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A home with an old roof is not necessarily the end of the line for a homebuyer’s dream. Sellers may be willing to negotiate a lower selling price to help a buyer cover the cost of roof replacement. The good news for the buyer is a new roof, along with a new warranty, is like a new beginning for the home with decades of reliable service ahead. Roofing manufacturers such as TAMKO Building Products LLC offer limited lifetime warranties that may add peace of mind. A roof can make or break a home deal. Any potential buyer should be sure to get the facts before committing to a sales contract. For more information, visit www. tamko.com. (BPT)
How home design trends are evolving for social distancing
COVID-19 has brought changes to everything, and home design is no exception. Experts are expecting to see lasting impacts on everything from the materials we use to the rooms we prioritize. Check out these and other noteworthy trends: VIRTUAL HOME SALES SAFE SHOWINGS The Housing Market is Very Busy!
Christine DiNardi (401)480-1550 FREE PROPERTY ANALYSIS
CDiNardi@aol.com www.DiNardiGroup.com facebook.com/DiNardiGroup/
CENTRAL Michelle Pacheco
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Houses over apartments: Many people who live in condos or apartments do so to be closer to the action — work, entertainment and shops — and never planned on spending much time at home. But the pandemic has changed that, and more people are going to want a home that offers plenty of room and outdoor space in case they need to self-isolate again. Self-sufficiency: A hard lesson we’ve learned is that things and services we thought we could count on aren’t necessarily a sure thing, so items that increase selfreliance will become very popular. Expect to see more homes with sources of energy like solar panels, sources of heat like fireplaces and stoves, and even urban and indoor gardens that allow you to grow your own produce. Outdoor living: Between playgrounds closing and parks becoming overcrowded, many of us are turning to our balconies, patios and backyards for fresh air and nature. This means we’re going to be investing more in our outdoor spaces, with functional kitchens, soothing water features, cozy firepits, and high-quality outdoor furniture to create a much-needed escape. Healthier spaces: Thanks to spending more time indoors and reprioritizing our health, we’ll turn to design to help ensure our homes are safe and healthy for our
families. We’ll see a rise in products like water filtration systems as well as materials that improve indoor air quality. For new homes and additions, alternatives to wood-framing like insulated concrete forms from Nudura, which offer improved ventilation for healthier indoor air quality and an environment that’s less susceptible to mold, will be key. Home office space: Business experts are suggesting many companies will see that working from home is not only possible but offers tangible benefits, like saving money on office space rent. With working from home on the rise, creating a home office space that inspires productivity will be a major project many of us tackle. Luxury home office furniture that feels chic and blends into your décor as well as ergonomic chairs and desks will see a major boost. Custom and quality: With the hit to the economy, people are going to be buying less, but what they do buy will be better quality, while at the same time making an effort to support American businesses. When it comes to design, trends will shift to locally made furniture, custombuilt homes and pieces and materials that stand the test of time. Find more information at nudura.com. METRO
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