What is Home Equity?

 

Purchasing a home is a huge life event. It’s an investment that, over time, could yield a significant increase in value. As the years progress, the value of your home could increase. If and when the time comes to sell, hopefully you’ll find that you can get more money for your home than what you originally paid for it; yielding you a profit.

 

But the resale value, or even the appraised value before a sale, of your home is not the only value your home contains. When you purchase a home and make payments on your home mortgage, you start building what is called home equity. Home equity is the difference between the current value of a home and the amount still owed on the mortgage. As the principal of the mortgage amount decreases as a result of monthly mortgage payments, the home equity increases – even if the home doesn’t increase in value. So, you can build home equity from an increase in the potential sale price of a home and from paying down the mortgage debt that you owe on your home.

 

What is the Value of Home Equity?

 

Home equity is money in the bank. Homeowners can borrow against their home’s equity to pay for home repairs and renovations, school tuition, costly medical expenses, and even pay off debt. Your home provides you with financial opportunities not many lenders can provide. Home equity is a significant advantage to purchasing a home and a great financial resource to have. You never know what life will throw at you. It’s always good to have a “nest egg” of readily available built up capital to turn to if you’re faced with a financial crisis.

 

How do I use My Home Equity?

 

If you want to use your home’s equity for home repairs, college tuition, etc. , you first need to get a home equity loan. A home equity loan is a loan based on your home equity. There are two types of home equity loans:

 

1) A second mortgage (a.k.a. traditional home equity loan); and

 

2) A home equity line of credit loan.

 

A second mortgage is a loan where the lender lends you a lump sum, based on your home’s equity, and interest starts accumulating once the loan is issued. A home equity line of credit loan, however, is a loan where the lender presents you with a credit card or checkbook that you can use to make purchases. Just like a second mortgage, the amount you can spend is based on your home’s equity. But unlike a second mortgage, interest on a home equity line of credit loan doesn’t start accumulating until you make your first purchase with the card/checkbook.

 

Both home equity loan types are feasible means to utilizing your home’s equity.

 

Which type of loan you choose is up to you and your specific financial needs. Both loan types are primarily low interest loans and, for most home equity loans, the interest you pay is tax deductible.

 

However, it is important to know that when you take out a home equity loan, it means the lender can reposes your home if you default on your payments. In other words, if you don’t pay your home equity loan in full or default on too many payments, the bank or lender can take away your home and use its current value to pay for what’s owed. So it’s crucial that you maintain your loan payments. A home equity loan is a great financial resource, but if you don’t pay it back, it could end up costing you your home.

 

Purchasing a home is a venture worth taking. The appreciation of your home’s value and the equity you can build make your home a profitable investment that can’t easily be matched.

For more articles and suggestions, visit http://www.bills.com/home-equity-basics-article/

 

Vapor Barriers

Crawlspace Vapor Barriers

Throughout the United States, even in desert areas, there is moisture in the ground from groundwater being absorbed. Even in an apparently dry crawlspace, a large amount of water is entering the home. In a dry crawlspace, the moisture is drying out as fast as it is entering, which causes high moisture levels in the crawlspace and elsewhere in the house. A solid vapor barrier is recommended in all crawlspaces and should be required if moisture problems exist.

This vapor barrier, if properly installed, also reduces the infiltration of radon gas. Of course, if the moisture is coming from above ground, a vapor barrier will collect and hold the moisture. Therefore, any above ground source of moisture must be found and eliminated. The source may be as obvious as sweating pipes, or may be more difficult to spot, such as condensation on surfaces. The solution can be as simple as applying insulation to exposed sections

of  the piping or complex enough to require power exhaust fans and the addition of insulation and vapor barriers.

The more common causes of moisture problems in a new home are moisture trapped within the structure during construction and a continuing source of excess moisture from the basement, crawlspace, or slab. To resolve this potential problem, 6-mil plastic sheets should be laid as vapor barriers over the entire crawlspace floor. The sheets should overlap each other by at least 6 inches and should be taped in place. The plastic should extend up the perimeter walls by about 6 inches. The plastic sheets should be attached to the interior walls of the crawlspace with mastic or batten strips. All of the perimeter walls should be insulated, and insulation should be between the joists at the top of the walls. Vents, which may need to be opened in the late spring and closed in the fall, should not be blocked. If not properly managed, moisture originating in the crawlspace can cause problems with wood flooring and create many biological threats to health and property. A properly placed vapor barrier can prevent or reduce problem moisture from entering the home.

Concrete paints, waterproofing sealers, or cement coatings are a temporary fix. They crack or peel and cannot stop gases, such as water vapor and radon.

Damp basement air spreads mold and radon through the house. Efflorescence (white powder stains) and musty odors are telltale signs of moisture problems. Basement remodeling traps invisible water vapor, causing mold and mildew.

Most basements start leaking within 10 to 15 years. The basement walls and floors should be sealed and preserved before they deteriorate. The basement floor should be concrete which has been poured on at least 6 inches of gravel. The gravel distributes groundwater movement under the concrete floor, reducing the possibility of the water penetrating the floor. A water proof membrane, such as plastic sheeting, should be laid before the concrete is poured, for additional protection against flooding and infiltration of radon and other gases.The basement floor should be gradually but uniformly sloped in all directions toward a drain or a series of drains. These drains will permit the basement to drain if it becomes flooded.

Water or moisture marks on the floor and walls are signs of ineffective waterproofing or moisture proofing. Cellar doors, hatchways, and basement windows should be weather-tight and rodent-proof. A hatchway can be inspected by standing at the lower portion with the doors closed; if daylight can be seen, the door needs to be sealed or repaired.

Vapor Barriers for Concrete Slab Homes

Strip flooring and related products should be protected from moisture migration by a slab. Proper on-grade or above-grade construction requires that a vapor barrier be placed beneath the slab. Moisture tests should be done to determine the suitability of the slab before installing wood products. A vapor barrier equivalent to 4- or 6-mil polyethylene should be installed on top of the slab to further protect the wood products and the residents of the home.

 

Accurate Home Inspection of Atlanta

www.findmeaninspector.com

 

Home staging is a mixed bag because there is so much you can do that knowing where to start, especially if you are doing it yourself, is almost as important as the staging itself. In a down real estate market (or any market) you could find yourself spending thousands of dollars to make your home stand out from the rest of the competition. But will you recoup your costs? How do you know where to start? Read on to see the top seven home staging basics that will save you money and still get buyers to swoon over your home every time.

1. Check your bulbs twice. – Home lighting is quite possibly the most effective way to sell your home. When a buyer looks through your home for the first time it’s an exploration and as such they are trying to see every detail during their first trip (and impression) of your home. If a buyer spots a burned out bulb or is unable to see all the space in a closet because the lights don’t work then they deduct the perceived loss of square footage and needed maintenance from your asking price. Stop this top objection in its tracks by replacing all of your burned out bulbs before putting your home on the market.

2. Clean the gutters. – How your home looks on the outside is 50% of the buyer’s first impression. If the buyer walks up to the front door and sees gutters weighed down by leaves and other debris it triggers thoughts of deferred maintenance and future home structure problems. A home buyer does not want to inherit a home seller’s problems so cleaning the gutters and ensuring they are not sagging will clear the path to a successful home tour.

3. Pack your family photos and awards before putting your home on the market. – Your home is your home. It’s a very personal space but once you have decided to put your home on the market you have to take into consideration that home buyers are trying to see this as being their next home. Family photos and awards, all great things to have, should be packed before you put your home on the market to avoid creating visual breakers when a buyer tours your home.

4. Clear the counter space. – There are two types of real estate a buyer considers when looking at your home. The first is the home and property the home resides on and the second is usefulness of the interior space of your home. Kitchens are the heart of the home and as such the buyers want to know that there will always be room to grow in that space. Clear away non-essential counter appliances and kitchen accessories to give off the impression of more space for the buyer’s dollar.

5. Get the carpets cleaned professionally. – Carpets are beautiful and make for great floor surfaces but if you haven’t had them cleaned since you moved in then you should have it done before putting your home on the market. Dogs, kids and the elements of nature all make their mark on carpeting over the years and the last thing buyers want to do when buying a home is take on a large project like carpet replacement after they move in.

6. Paint high traffic spaces. – High traffic spaces are the best places to find dings and marks on the walls which look like deferred maintenance but are in reality the consequence of daily wear and tear. Patch and paint the walls in high traffic spaces.

7. Define your rooms! -Buyers have imaginations but not when they are looking at homes. When selling your home the dining room can no longer be the home office and the living room cannot be the catch-all play area and living space. Clearly interpret what your home has to offer to buyers so they don’t deduct points (and dollars) when writing an offer for your home.

Home staging is as much about putting your home’s best foot forward as it is whisking away the most obvious home buyer objectives before the buyers have a chance to come up with them. By following these seven home staging basics you will be able to command the right price for your home in any market and increase the chances of selling your home quickly.