Category: Life at Home

Build Your Budget in 2020

Posted on by Emily Gregory

Creating and utilizing a budget is an integral part of everyone’s financial stability and growth. The term “budget” can sometimes get a bad wrap, but it’s not about harsh restrictions. Building a budget just means knowing how much money you have, where it’s at, and where it’s going. If you don’t currently use a budget, here are some tips from experts on how to get started!

Step 1: Write down a full list of your finances.

  • This includes assets you currently have in checking, savings, and other accounts (including retirement, college funds, etc.)
  • All current debt. (Including car and mortgage loans, student loans, credit card balances, etc.)
  • Your current monthly income from all sources.
  • Your current monthly expenses, both fixed and variable. Fixed expenses are bills that are the same amount each month. Variable expenses are bills that can vary, such as utilities, and your living expenses outside of bills, such as gas and groceries.

This will give you a good overall grasp of your current financial situation so that you can build a budgeting plan that works best for you.

Step 2: Track your spending

Many experts recommend tracking all your spending for at least one month before developing your budget. This will provide an accurate look at how much you spend on variable expenses each month, so you can create a budget that accommodates your lifestyle.

Step 3: Pick a budgeting style that works for you!

There are several popular budgeting styles out there, and even the pros admit to some trial and error. It’s perfectly okay to try out a few different plans before you settle on one you love! Some popular plans are:

50/30/20 Plan: This plan involves spending 50% of your net income on needs, 30% on wants, and 20% on debt reduction and/or savings. Your “needs” category is anything you can’t live without, such as a place to live, a car to drive, affordable food, and clothing. Everything else you want to spend money on falls into the “wants” category, such as cable, dining out, and shopping. Many have found this to be a highly effective plan for them! For more about the 50/30/20 plan, check out: https://www.thebalance.com/the-50-30-20-rule-of-thumb-453922

Cash Envelope Plan: With this plan, you divide your spending after bills and savings/debt reduction into categories. Examples of these categories would be groceries, gas, fun, shopping, and beauty. You then would determine a set maximum amount you can spend for each category and put that amount of cash into labeled envelopes for each category. You can use the cash from the appropriate envelope for all of your spendings throughout the month. The concept behind using cash envelopes is to encourage you to carefully track all of your spending in different categories, and also promote mindfulness about your purchases. The thought of physically handing over cash has a bigger impact mentally than just swiping a card. For more details on setting up a Cash Envelope Plan, check out https://www.thebudgetmom.com/the-ultimate-guide-to-the-cash-envelope-system/

Reverse Budgeting Plan: This simplifies budgeting as much as possible. You set a firm (preferable aggressive) amount for monthly savings and/or debt reduction. Many people have this amount automatically paid and/or transferred to help enforce the monthly goal. After that, and paying the rest of your necessary bills, money will be free to be spent as you choose. This plan is considered ideal for those who want the best results with the least amount of time and thought spent on budgeting. For more information on Reverse Budgeting, check out:  https://www.forbes.com/sites/peterlazaroff/2016/02/29/creating-a-budget-that-works/#63af655b7bcc

Step 4: Review your plan and make adjustments as necessary!

Budgeting is a continual and rewarding process, and since it’s your own lifestyle and finances you impacting, all the freedom to choose is entirely in your hands.

If your goal in boosting your savings and reducing your debt is purchasing or refinancing a home, our loan officers can offer additional insight on mortgage qualifications and mortgage program offerings. Contact us today! https://firsthome.com/find-a-loan-officer/

Tips for Preparing for Tax Season

Posted on by Emily Gregory

2019 has come to an end which means tax season is right around the corner. Soon it will be time to prepare your 2019 tax returns and it pays to be ready! Getting prepared early can not only save you time and stress but potentially money.  It’s especially important if you have experienced major changes throughout the year such as getting married or buying a home. The IRS encourages early preparation and has recently shared a few tips that can give you a head start.

Always making sure you’re paid up on your taxes is important. The IRS expects that you will have paid most of your tax bill by the time you file your return. If your taxes are being withheld from your pay, chances are that’s enough to cover your total bill and even leaves you with extra for a refund. But keep in mind life events can happen which affect your tax withholding.  You will want to make sure your withholding will also take care of any other income you receive from other sources such as a business or investments.

Of course, you won’t start receiving your W-2s or 1099s until January at the earliest, but there are a few things you can do while you wait. Gathering important records and documents ahead of time will allow for a quicker return. Making sure your address is up to date with your employer and investment providers will ensure you receive these forms in a timely manner. Creating a checklist is also very helpful and can be used every year. Look at your old tax records to compile of list of what materials you were sent. Use that list to create a checklist so you know what to expect throughout the tax season. If you have recently purchased a home, there are some additional documents you may need to gather such as the settlement statement, property tax statement, and if you’re a first-time homebuyer, your Mortgage Credit Certificate.

When you’re all set to file, consider doing so electronically! Every year the IRS is encouraging taxpayers to file electronically for many reasons. Not only is filing electronically quicker and more secure, but it also’s easier and highly accurate. Anyone with a bank account is eligible for direct deposit. Meaning your refund will be automatically sent to your bank account, so you won’t have to wait to receive the check in the mail.

Now that the holiday season is over, preparing for tax season should be at the forefront of your mind. Taking steps to ready yourself will prove to be beneficial in the future.

Source: https://www.msn.com/en-us/money/taxes/4-ways-to-get-ready-for-tax-season/ar-BBWsZss?ocid=spartanntp

Calculating Your Home Equity

Posted on by Emily Gregory

Home equity is the portion of your home that you’ve paid off — your stake in the property, as opposed to the lender’s. For many homeowners, this is their most valuable asset. And the best part is that it often increases without you having to do anything more than making your regular monthly mortgage payment.

So what is it exactly? 

Equity is the portion of the home that you truly own and does not need to be repaid to any lender. In other words, it is the appraised value of your home minus any outstanding mortgage and loan balances. In most cases, home equity builds over time as you pay down mortgage balances or add value to your home.

How is it calculated?

Current Appraised Value – Mortgage Loan Balance = Home Equity

Subtract the amount you owe on your home loan/s from its appraised value to get how much equity you have in your home.

Example:

Appraised Value is $500,000 – $230,000 Loan Balance = $270,000 in equity

How do you use your home’s equity to make renovations?

A loan (second mortgage) allows you to borrow a certain amount for your renovation. The equity in your home is used as collateral, giving you free access to spend the money on your home project.

A HELOC is typically a variable-rate line of credit based on your equity, that allows you to borrow and repay repeatedly.

You may also have the ability to refinance, which allows you to turn your equity into cash –  referred to as “cash-out” refinancing.  This gives you access to the equity without selling your home.

Talk to a Loan Officer to learn more about your options.

Which Renovations Have the Highest Impact on Your Home’s Value?

Posted on by Emily Gregory

Remodeling your home is a wonderful way to make it your own when you first move in, or to update the space as your needs and styles change over time. Since home renovations can be pricey, balancing your budget and wish list can be tricky. Fortunately, there are lots of projects that can make you love your home even more, while also boosting its value. Increasing your home’s overall value increases your equity! This means that not only will you see a return on your investment when you sell your home, but you’ll also have a lower loan to value ratio while you live in it, which can impact your options when refinancing, and even potentially eliminate the need for a mortgage insurance.

The “2019 Cost Vs Value Report” (www.remodeling.hw.net), revealed which home renovations will give you the highest percentage of return on investment, and what they cost on average. According to the study, the top five renovations that provide the biggest bang for your buck are:

1. Garage door replacement

• Average out-of-pocket: $3,611
• Average return on investment: $3,520
• Percentage of cost recouped: 97.5%

2. Manufactured stone veneer

• Average out-of-pocket: $8,907
• Average return on investment: $8,449
• Percentage of cost recouped: 94.9%

3. Minor Kitchen Remodel

• Average out-of-pocket: $22.507
• Average return on investment: $18,123
• Percentage of cost recouped: 80.5%

4. Deck addition (wood)

• Average out-of-pocket: $13,333
• Average return on investment: $10,083
• Percentage of cost recouped: 75.6%

5. Siding Replacement

• Average out-of-pocket: $16,036
• Average return on investment: $12,119
• Percentage of cost recouped: $75.6%

Renovating your home can be a wonderful way to boost your enjoyment and your equity! Find more information from this study, including how project costs and values were calculated, at www.remodeling.hw.net/cost-vs-value/2019/.

Thinking about purchasing a fixer-upper, or refinancing to free up funds for your home renovation? Contact one of our Loan Officers today!

PreScreen Opt-Out

Posted on by Emily Gregory

Under the Fair Credit Reporting Act, Consumer Credit Reporting Agencies can share lists that contain the information of people who had recent credit inquiries, such as with mortgage applications. Companies, and sometimes individuals, purchase those lists with the intention of soliciting and selling additional credit and loan services, known as “Firm Offers”, to the unsuspecting borrower.

These solicitations start quickly and continue even after the loan has closed. Many borrowers would prefer not to receive the extra “junk” mail or sales calls, and fortunately, there is an easy fix!

  • Visit www.OptOutPrescreen.com to opt out. This prevents the Consumer Credit Reporting Companies from providing your credit file information for Firm Offers.
  • You can choose to opt out for five years, or permanently.
  • If you ever change your mind, you can also visit this site to opt in and receive eligible offers again.

You should be able to choose whether you want your information shared with potential solicitors as a result of your mortgage application. That’s why at First Home Mortgage, we know the importance of sharing this information with all our clients, to ensure you know your rights under the Fair Credit Reporting Act.

Please reach out to one of our loan officers if you have any questions!

5 Tips for Hosting Thanksgiving in Your New Home

Posted on by Erica Atti

Golden leaves and crisp air mean the holiday season is nearly upon us, and Thanksgiving is right around the corner! Hosting Thanksgiving dinner for your family and friends is always rewarding, and the good news is – it’s still completely feasible right after a move. By following these 5 tips, you’ll be ready to welcome loved ones to your new home for a fun-filled and memorable Thanksgiving.

1. Take Inventory

Moving and unpacking is a hectic process, even for the most organized homeowners. All your belongings have been boxed up and shuffled around, so it’s important to take the time to inventory your Thanksgiving stock before the big day. Be sure you know where all of the dishes, cookware, and supplies you’ll need are in your new home. Your pantry will likely have been purged before the move, so check for any spices or must-haves you need to include on your grocery list!

2. Get Cooking (or not!)

Cooking in a new kitchen is always a bit of a learning curve. Unless you happen to have the exact same appliances you had in your old home, settings and temperatures will all be just a tad different. Practicing using your new appliances beforehand is a great idea. If you’re still struggling, consider purchasing some of your dishes, or even your turkey, premade. You can also play it safe by sticking to tried and true recipes you’re already comfortable with. If your friends and family offer to bring dishes and desserts of their own – let them! It makes them feel good to contribute, and it takes some of the pressure off you.

3. Renovate within Reason

It’s natural to want to show your new home off with a houseful of friends and family coming over. That said, try to set reasonable goals for yourself when it comes to any home renovations or updates that you’re trying to accomplish before Thanksgiving. Painting a room the week before is one thing while tearing down walls could result in half-finished results, mess, and a whole lot of stress. Try to prioritize your projects which will have the biggest impact overall. Also, keep in mind that your guests will be spending most of their time in the kitchen, family, and dining spaces on Thanksgiving Day, so these might be the best areas to focus on.

4. Add a Dash of Style

Decorating your brand-new space is one of the best parts of moving! For holiday hosting right after a move, let time and budget be your guide. There are a million beautiful ideas out there, ranging from luxe and lavish to simple and affordable. Even if you haven’t fully decorated your home yet, you can set a festive tone right as guests arrive, with a fresh seasonal wreath and doormat. Add a decked-out dining table to suit your style, and everyone will be in the mood to gather!

5. Feel the Love

Finally, try and relax! Your loved ones are there to spend the day with you, and everything doesn’t have to be perfect (or even close) for everyone to have a great time. Enjoy being thankful and making memories together, and know that everyone appreciates all the effort it takes to host for the holidays – especially after a recent move.

 

Smart Technology for Your Home

Posted on by Emily Gregory

Smart home technology has really taken off over the last few years. Every gadget and device you could need is on the market right now. From voice-activated assistants to robot vacuums, companies are creating products to make our lives a little bit easier. So what smart home options will be beneficial to you? Well, it depends.

If you want something simple or need a quick way to make grocery lists or check the weather without having to pick up your phone, a voice-activated home assistant may be right for you. Devices like Google Assistant and Amazon’s Alexa are the top choice for homeowners. Smart assistants are great gadgets to have for quick voice commands.

Smart lighting is a great feature to have if you aren’t home a lot, but don’t want outsiders to think your house is empty. Smart lighting allows you to control the lights in your house from your smartphone. Whether you are miles away from your home, or simply forgot to turn the light off in the bathroom but don’t feel like getting back up (don’t worry, we’re not judging you!), this feature is super convenient and easy to use.

Video monitoring systems are also great features to have in your home. The benefits are pretty obvious, cameras will allow you to feel safe and secure while you are in your home or out for the day. Alerts will typically pop up on your smartphone letting you know activity is present at your door. Some systems also allow you to video chat if someone comes to your door, adding a bit more security.

If you want a more hands-off approach or if you don’t feel comfortable buying and working these gadgets yourself, specifically video monitoring systems, there is some good news! There are many options to have a professional automation system installed for you. Added benefits of this include not dealing with the hassle of installing and keeping tabs on your devices and gadgets. The company that installed the devices will handle everything for you, monitor your security cameras, and let you know if any issues arise.

Having smart technology in your house is very beneficial as a homeowner and will be an added feature if you plan on selling your house. With so many options at different price points, it is easy to add a few key gadgets to your home and build from there. Whether you are looking for a simple device, a complete smart home system, or a fully automated household, the options are endless.

Sprucing Up the House for Spring

Posted on by Emily Gregory

Open those windows and turn off the heaters, warmer weather is on the way! Winter has faded, and the trees are starting to bloom, spring is finally upon us. Warm weather fans rejoice!

As the spring season is setting in, it’s a good idea to make a home maintenance checklist of items to prep your home for the new season. Spring cleaning isn’t just for the inside of your home. Check out the tips below that will help prepare the inside and outside of your home.

Inspect the Roof

Winter weather can cause havoc on your home’s roof, whether it’s damaged from ice or snow. With “April Showers” on the way, it is important to inspect your roof for missing or damaged shingles which can lead to leaks. A leaky roof can cause havoc on your wallet if you ignore it.

Test Smoke and Carbon Monoxide Detectors

While we hope you will never have to rely on these items, make sure your smoke and carbon monoxide detectors are in working condition and have fresh batteries.

Check Water Drainage and Gutters

Clogged gutters can lead to leaks, which in turn will lead to water damage. Save your future self some money by clearing out your gutters and getting rid of any dirt and debris that piled up over the year.

Clean Up the Lawn

Properly maintaining and servicing your lawnmower and other lawn accessories will ensure they last longer. Also, remove any sticks and debris from the yard before mowing. Add new mulch to the garden for a fresh new look.

Service the HVAC Unit

Although you should do this more than once a year, servicing your HVAC unit is a spring must-do. Cleaning any dirty filters and making sure the unit works properly can save money on your AC bill each month, especially when the summer heat sets in.

Window and Door Treatment

Clean and inspect windows, doors, and screens. Fix any cracks in windows or doors and patch up any holes in your screens. On cooler nights, you can open the windows in your home and turn off the AC to help reduce your electric bill.

Fix the Cracks

Inspect your driveway and sidewalks for any cracks that occurred during the winter months. Repairing these issues early on will be easier and more budget-friendly for you rather than waiting until it becomes a major problem.

Preparing Your Home for Hosting

Posted on by Emily Gregory

This time of year is always a special time of year. The holidays are right around the corner, and it’s time to celebrate! One of the biggest joys of the holiday season is getting to spend time with family and friends. If you are hosting a company for the holidays, the key is to prep in advance so you can cut back on any last-minute mishaps. Whether you have guests staying overnight or just visiting for the day, here are a few tips to help prep your home:

Clean Your Home

This one is a no-brainer, but you want your house to look clean and inviting. Starting early will allow you to get a good, deep clean of your home and really get things shining. A few days leading up to the holiday, you can do a spot clean of the kitchen and bathrooms and any area that will get a lot of traffic. Be sure the entryway in your house is free of clutter and there is space for guests to hang coats.

Decorate With Seasonal Items

A few easy ways to make your home look cozy and inviting are to decorate with seasonal items. Thanksgiving and Christmas wreaths are easy pieces to find and hang around the house. Seasonal flowers such as poinsettia, holly, Christmas roses, and mistletoe can be spread through the house as well. If you will have small children around the house, simple items like warm, cozy blankets will add a homey feel and will be safe around the little ones.

Stock the Pantry

This tip is especially helpful if you have guests staying overnight, or for a few nights. If you know what your guests like to eat and drink, be sure to add it to your pantry and fridge. If you don’t, ask them in advance if they have any requests for their stay. This is an easy way to make your guests feel welcome and at home.

Prepare a Welcome Basket

This tip is also for your overnight guests. Having a welcome basket in the guest bedroom will be a pleasant gesture for your holiday company. Provide everything from extra bath towels to toiletries, and even some warm fuzzy slippers (because you know the last thing you remember to pack when traveling are slippers!). Little gestures like this certainly go a long way to help make your guests feel more comfortable.

While it is great to have family over for the holidays, it can get a little hectic. Don’t fret too much if every little thing on your to-do list doesn’t get done. Everyone will be so wrapped up in enjoying each other’s company, that the small things won’t seem like such a big deal. Be thankful for the friends and family you have, and enjoy your time together.

A Touch of Hocus-Pocus

Posted on by Emily Gregory

Time to dress up your lawn! Halloween is right around the corner, so break out your most spook-tacular decorations! Getting into the holiday spirit and decorating can be a fun activity for the entire family. Whether you want to keep it simple with a few pumpkins, or totally transform your entire yard, let your imagination run wild. Here are a few festive themes to get you started.

Spooky Spiders 

Think cobwebs, giant spiders and more cobwebs! Drape some cobwebs through the branches of trees and over bushes. Hang them from your front porch and near your front door to spook some trick-or-treaters! Add spiders of all sizes throughout the cobwebs. Scatter them across the lawn for an extra hairy look.

Creepy Cemetery

Turn your yard into a hauntingly scary graveyard. Include tombstones, skeletons and bones. Add a fog machine for an eerie setting. Feeling extra creative? Add an entryway with a chilling cemetery name at the front of your lawn. If you have leaves falling from the trees in your yard, don’t bother raking them. An unkempt look makes a cemetery even more unnerving.

Magical Movies

Have a favorite Halloween-themed or scary movie? Now is the time to re-create the movie set! If you are a Harry Potter fan, decorate your yard like Hagrid’s pumpkin patch or turn your house into a Hogwarts replica. More into The Haunted Mansion? This one is pretty self-explanatory. Turn your house into a neglected-looking manor; add in a sound machine producing scary ghost noises and creaking doors.

Simple Spirit

Minimum effort can sometimes have maximum effect! Keep it simple and line your porch with pumpkins and lanterns. If you don’t like the mess of carving pumpkins, paint on some fun designs or bling them out with some glitter. Sparkle always adds a magical touch!

Big & Bulky

Inflatable decorations are an easy way to jazz up your lawn, and it won’t take too much effort to set up. You can find just about any type of inflatable, from pumpkins to witches and ghosts to spiders. Don’t limit yourself to one inflatable, go over-the-top and get 4 or 5, if they fit on your lawn.

There is no such thing as too much, or too little decoration; Halloween is a time to be creative. So put on your thinking cap (or witch hat, whichever you prefer) and get to decorating! Soon you will have the best dressed lawn in the neighborhood.

Connect With Us

  How Can We Help?