Hope Leitner, Realtor®, CRS

In divorce situations, it is common, for the spouse who keeps the home to refinance to remove the other spouse from the loan.   Equally as common, first-time buyers who don't have enough income to qualify may ask a parent to co-sign and must add their name to the mortgage. Another situation that requires removing or adding a person to a loan could be to qualify for a better interest rate.   The difference in a minimally acceptable credit score and something that might be considered "good" could be as much as a 0.5% higher rate for the term of the mortgage. Consider that a couple is buying a home on a conventional loan, and they have individual credit scores of 760 and 670.   The underwriters will price the loan based on the lower of the two scores.   A half percent interest on a $400,000 30-year mortgage could have close to $110 a month difference. A possible solution to this dilemma could be available, assuming the borrower with the higher credit score had eno...

Let's assume that you have owned your home for several years.  It has increased in value and the unpaid balance considerably less than you originally borrowed.  In short, you have equity in the home.  You're thinking about buying another home and one of the questions going through your mind is "should we find a replacement property before we put our home on the market? It is a good question but maybe there is another one you should be asking.  "Should we keep our current home and convert it to a rental when we buy another home?  The answer to the question may have a great deal to do with your finances but if you can afford it, it may end up being one of the better investments you have made. Do you have enough discretionary funds for a down payment and closing costs for your new home?  Is it enough to put 20% down payment so you can avoid paying mortgage insurance?  Can you qualify for the mortgage on the new home with the additional liability of yo...

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties Daily Habits to Support Physical and Mental Health Between work, family, social lives and hobbies, it can be easy to forget to take care of ourselves. Below are a few things you can do to safeguard your physical and mental health: Call a Friend While our lives may be too busy to see our friends regularly, calling a loved one every day can help you feel a sense of community and belonging. Touch Your Toes While hitting the gym or going for a walk are great ways to exercise, remember to stretch your muscles. At least once a day, take 5 to 10 minutes to stretch your limbs and get your blood flowing. Learn Something New If you’re no longer in school that doesn’t mean you can’t continue learning. Every day take 15 minutes to choose an interesting article to read or listen to a podcast that can help you gain a perspective you may not have had before. Rest Rest should not occur only when y...

With the rapid appreciation that homes have had in the last two years, most homeowners have equity.   A common way to release part of the equity is to cash-out refinance but some homeowners may not be eligible currently. This type of loan replaces the current mortgage by paying it off and an additional amount of cash for the owner.   Generally, lenders will consider a new mortgage up to a total of 80% of the current value. Typically, the rate on a cash-out refinance will be slightly higher than a traditional purchase money mortgage.   As is in any lending situation, the rate depends on the borrower's credit and income.   The best interest rates are available to borrowers with higher credit scores, usually over 740. Loan-to-value can affect the rate a borrower pays also.   A 70% loan-to-value mortgage could be expected to have a lower interest rate than an 80% LTV because there is a larger amount of equity remaining in the property and therefore, less risk ...

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties The Benefits of a Hardship Plan If you’re buried in credit card debt, there’s a reasonable solution that your credit card company may allow you to use, but only if you ask about it. A hardship plan, also known as a credit card payment plan, can help dig you out of debt and ultimately improve your credit score. A hardship plan can also save you money in interest payments and reduce your monthly credit card bill. Don’t be scared if you think a hardship plan is the same thing as the debt management plans you see on TV commercials. Those require you to pay a fee to a credit counseling agency to negotiate debt repayment terms with each of your lenders. All of the debts are paid through a single monthly payment that the counseling agency collects from you. The credit counselor is the liaison between you and your debt collectors. A hardship plan, however, doesn’t have an intermediary or m...

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties Common Natural Cleaning Products Found in Homes Many home cleaning products can be expensive and include harmful chemicals. With just a little extra elbow grease, you can save money by using some natural cleaning products you may already have around the house. Here are some common and cheap items that are free of artificial ingredients and can make house cleaning simpler: Baking Soda Baking soda can be used for many other things than refreshing the smell of a refrigerator. For a dollar or so, a small box of baking soda can go a long way in cleaning up spills. For a carpet stain, cover it with baking soda and spray it with a mixture of half white vinegar and half water. The baking soda will foam up, then let it set for three hours before scrubbing. Let it dry overnight and vacuum the baking soda up the next day. Baking soda can also be used to help clean dirty pans; deodorize musty ...

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties How to Extend the Life of Your Carpet Whether you adore your new carpet or can’t afford to replace it every few years, below are a handful of ways to extend the life of your carpet—even if you have kids and pets. 1. Lay down a rug in high traffic spots.   It may seem weird to lay a rug over your carpet, but in places that see a ton of foot traffic—like by the bed, couch or doorways—adding an extra layer of protection in the form of a rug or mat can seriously prolong your carpet’s life. 2. Vacuum frequently.  Make sure you vacuum once a week to pull up damaging dirt and dander that can wear down your carpet overtime. 3.  Take off your shoes.  By enforcing a “no shoes inside” policy in your home, you will reduce the amount of dirt that gets tracked in. Add a shoe rack by the front door to help make it easy. 4. Act fast with spills . If you get a splash or spi...