Refinancing: What you need to know
Thanks to all-time-low interest rates, the number of homeowners refinancing their mortgages is at an all-time high. Of course, no one should refinance just because everyone else is doing it. But, for many homeowners, the benefits are simply too hard to ignore any longer.
Save money each month. According to Freddie Mac (The country’s largest purchaser of home mortgages), the average homeowner who refinances is able to cut their monthly payment by $108 (almost $1,300 per year) for a $200,000 loan.
Save even more in the long run. If you currently have a 30-year mortgage, refinancing with a 15-year version can save you thousands of dollars in interests over the life of the loan, plus allow you to build equity in your home faster than ever.
Switch to a fixed-rate mortgage. Refinancing with a fixed-rate mortgage gives you the security of knowing that your monthly payment will remain steady, regardless of whether lending rates rise or fall in the years ahead.
Access emergency funds. Something the mortgage industry calls “cash-out refinancing” allows you to take out a new mortgage for more than your current principal balance and use the additional money for other expenses (remodeling, college, a major medical procedure, etc.). Of course, this option should only be considered if you have a real need for the money and a solid plan for paying it back.
Consolidate debt. While consolidating credit card debt under a home loan may not be wise (unless you have a plan for controlling any additional spending), refinancing to consolidate two mortgages at these record-low rates can provide significant savings in both cases.
Things to consider beforehand:
Before moving ahead with a refinance of your own, a number of factors need to be considered (and numbers crunched) before you can determine how much you’ll actually benefit and if you can qualify for the best rates:
Closing costs. The fees associated with refinancing your mortgage are called “closing costs” and generally add up to somewhere between three and six percent of your loan amount (between $7,500 and $15,000 for a $250,000 mortgage refinancing). While there are ways to lower some of those costs, you’ll still want to weigh those expenses against how much you stand to gain.
For example, let’s say you figure you’ll be able to save $100 per month by refinancing, and you’ve calculated the closing costs at about $10,000. That means you’ll need to continue living in the house for at least eight more years before the savings surpass the closing costs. In the mortgage industry, this is referred to as the break-even point; and the longer you continue living in the house beyond the break-even point, the more money you’ll save.
Your credit score. It depends on the circumstances, but most borrowers will need a credit score of 700 or higher to get access to the best rates and closing costs. To determine your score, get a copy of your credit report from Experian, Equifax and TransUnion. (Why all three? Because, if there’s any difference, most banks will use the lowest score.)
Your current level of home equity. To qualify for refinancing, your current level of “equity” (the difference between the market value of your home and the balance of your current mortgage) typically must be 20 percent or more. That means, if the market value of your home is $250,000, the remaining balance on your loan would have to be $200,000 or less.
Pre-payment penalty. Check to see if your current mortgage includes a pre-payment penalty for refinancing. That would likely make refinancing too expensive even at these record-low rates.
The importance of timing
Mortgage rates have sustained record lows over the last few years, and they will likely stay relatively low for the next few years. However, even a small increase can make a drastic change in the amount of money you will pay over the duration of your loan. Getting the lowest rate you can, will benefit your finances over the long-term.
Getting the process started is easy. Begin by checking your equity and credit score, then crunch the numbers using one of the many online mortgage calculators.
If the initial results look promising, ask your Windermere Real Estate agent for a recommendation on a reputable lender (or mortgage broker) who can provide you with an actual quote.
The Timeless Appeal of the Equestrian Life
Bronte Jacket with Fox and Horn Scarf, photo: O’Shaughnessey Apparel
Recently, I put my well-worn paddock boots away for a weekend and treated myself to a trip to New York. Though I love my horses and thoroughly enjoy taking care of them (yep, I even enjoy mucking their stalls!), I needed a little vacation, and New York is my version of Disneyland so off I went. It had been a few years since my last visit to the Big Apple and, as I walked the streets happily window shopping and people watching, I just had to giggle to myself. No matter what part of town I was in – Soho, Midtown, Upper Eastside – I saw well-dressed ladies wearing tall riding boots, snaffle-bit style belts and purses with a distinctly “horsey” feel to them.
It struck me, in the midst of a big bustling city where the only horses are the giant stone ones gracing the façades of old buildings and the few scattered cart horses pulling excited tourists through Central Park, that no matter who you are or where you live, the equestrian lifestyle has ubiquitous appeal. We all know that Ralph Lauren played a big role in defining this style in America, and clearly his influence has not dampened in decades but rather given inspiration to dozens of new designers creating in the same milieu. Lauren has built an empire on equestrian life images but, let’s face it, none of the folks running around in his famous Polo shirt just left a match. It’s probably safe to say that the majority of folks wearing a Polo have never even been to a match, and most polo players are probably not wearing Ralph Lauren (sorry Ralph). So, what is this appeal?
I don’t think it’s simply because equestrian sports are often favored by the mega wealthy, and hence that wearing equestrian-styled clothing somehow puts one in a league with the rich and famous. I believe it’s also about the feeling you get when you are near a horse. Horses have a regal quality and it is they who give meaning to the sport and the lifestyle. A horse would just as soon throw a prince off his back as a pauper. Likewise, he will just as likely love and care for a little girl astride his back for the very first time as the 90-year-old Queen of England. Being in the presence of a horse makes us feel special, and who doesn’t like feeling special?
Pure and simple, horses are magic and we all want a little more magic in our lives. Horses have carried us through war and peace, pleasure and competition. And even if you can’t have one to call your very own, wearing horse-inspired apparel makes us feel special, refined, and maybe even a little bit powerful. Just like the beautiful animals we so admire.
KiamaLise Herres is an equestrian properties specialist with Windermere Equestrian Living. She lives in Fall City, WA with her husband, two children, three horses, four dogs, one barn cat and a very sassy goat.
For more information on Windermere Evergreen please contact us here.
6 Alternative Flooring Solutions to Refresh Your Home
Feeling ho-hum about classic hardwood floors? Here are six alternative floor solutions that can give any room in your house a fresh sense of personality, whether you’re starting from scratch or looking for an inexpensive DIY update.
1. Rubber. Often associated with commercial interiors, industrial rubber flooring can also be a sleek and smart solution for homes. Rubber is comfortable to stand on, easy to clean and durable enough to take on plenty of mess and abuse — great for an entry, a mudroom or a laundry room. From a style perspective, it gives a room a hint of an industrial edge, but in warm muted tones that still create an inviting air.
In a kitchen, a rubber floor is a chef’s dream, as it cushions the feet while the cook is standing to reduce fatigue. Plus, the textural surface reduces slipping hazards from spills and is very child-friendly. DHV Architects, original photo on Houzz
Want a rubber floor with a less industrial vibe? Choose sheets or tiles of rubber with a flat surface dyed to various hues that draw from the tones in stone tile. You wouldn’t guess this floor is rubber by looking at it, but your feet would be able to tell.
Cost: Rubber flooring can be extremely inexpensive but, in general, quality materials start at $12 per square foot. Anything below that would probably be of a quality that wouldn’t look appropriate inside a home.
2. Bamboo. Bamboo flooring is similar to wood flooring in many ways, but it imparts a Zen flair that can add a sense of peace to a room. And it is typically more moisture-resistant and hard-wearing than wood.
It should be noted that not every bamboo product is equally environmentally conscious. For one thing, shipping products from overseas can quickly make up for any carbon-footprint cost saved during production. However, if you are looking for a durable natural floor that’s sustainably grown, bamboo is a great option to consider.
It’s also worth noting that bamboo flooring can come in quite a variety of styles. A higher-contrast grain and stain can create an exotic look, for an effect that is playful and energetic rather than soft and tranquil.
If you love the look of walnut or zebrawood, bamboo can recreate that vibe with a stronger surface, and without cutting down any rare trees.
Keep in mind that the stains and adhesives involved in bamboo flooring can off-gas with an unpleasant odor, so those who are sensitive to chemicals may want to avoid the space immediately following an installation, or look at traditional hardwoods instead.
Cost: Bamboo is generally comparable in price to hardwoods, running about $2 to $8 per square foot.
3. Parquet. Everything old is new again, and while some homeowners (and many renters) are wishing away their parquet floors, others are installing them anew. These patterned wood floors add a sense of life and richness to a home, bringing visual interest and a sense of dynamic energy that typical straight-laid planks can’t match.
Installing wood in a parquet pattern also gives a lot more character to inexpensive local woods that might not have an exciting grain. For a patient DIYer, a parquet floor gives a high-fashion look with a much lower price tag than some other choices.
To give a classic block parquet layout a modern twist, use an oversized pattern in squares 12 inches or bigger. And, yes, a warm honey or orange tinted stain is back as well, especially mixed with classic modern furnishings in deep rich tones like chocolate, ruddy tan or espresso or crisp, airy whites.
Cost: Installation fees may be a bit higher than for straight-laid flooring, but the material cost can be as low as a few dollars per square foot.
See These Styles at Your Local Showroom
4. Painted. Think painted wood floors are only for cottages? As with walls, painting a floor can create as many different moods and effects as there are colors of paint. And if you choose a paint in a durable finish, it will hold up just as well as your wall paint does.
For a contemporary interior, consider a painted floor in a simple, natural hue like a muted beige or an off-white, and mix it with anything from antiques to midcentury classics or hip, trendy pieces.
You can kick up the style of a painted floor another notch by creating patterned effects that echo stone inlays, without that thousands-of-dollars investment. With a little painter’s tape and patience, this can be another great DIY approach to getting high style at home without ripping out your existing wood.
For those who do prefer a relaxed cottage air, a muted color adds a lot of charm, much like an accent wall, only underfoot. Try pale blue for a semi-neutral that will work with neutrals or other colors without clashing.
Cost: Paint and a top coat will cost a few dollars per square foot, and can be applied to existing flooring (with some good sanding and prep) or to inexpensive wood planks for a new installation.
5. Concrete. Concrete floors may sound like the domain of cold, minimalist works of architecture, but they can actually come in many forms to suit various tastes and personalities. Like wood, concrete can be stained (or tinted), allowing the material to feel quite warm and human in a way that beautifully suits transitional or traditional spaces.
Why choose concrete? Well, you can imagine that if the material can handle the wear and tear in an auto factory or warehouse, it can easily handle pets, children and sharp heels.
For an added seal and a gloss effect, concrete is sometimes finished with a coat of resin. This gallery-like look typically comes with a gallery price tag, but for those who enjoy a modern atmosphere with a perfect polish, this look is definitely photoshoot-ready.
It should be noted that concrete does not retain heat well, and thus can be chilly without a heated floor system, but extremely cozy with one installed.
Cost: With heated floors and a sleek finish, the cost can definitely add up. Your budget could range from $2 to $20 per square foot and beyond.
6. Cork. Cork flooring, like bamboo, can be developed very sustainably, making many cork products a smart choice for those hoping to reduce their environmental impact.
In the case of cork, the finish is very important to determining how water-resistant the product will be. However, cork has natural springiness that makes it feel extra comfortable (a little like rubber) and makes it resistant to dents and dings. Plus, it has a unique visual texture that’s a little like wood’s but with a twist, for a very livable sense of flair.
Cork works beautifully for sleek modern spaces or contemporary ones, as it has a natural softness that gives it a friendly vibe. If you’re considering using carpet in some rooms and wood in others, consider cork for the entire home, and get the best of both worlds along with a sense of harmony.
Cost: Cork ranges from $3 to $8 per square foot, but keep in mind that some products may require an additional sealant to hold up to moisture and possible stains.
By Yanic Simard, Houzz
For more information on Windermere Evergreen please contact us here.