Selling Your Home in 2015? Boost Your Resale Value with These Three Inexpensive Renovations

To get top dollar for your home, renovations may be necessary. However, some renovations can prove costly and they don't always add value to your home. Here are three inexpensive renovations that are sure to improve the resale value of your home.

First Impressions Matter

Your home needs to have curb appeal. If the potential buyer doesn't see that, it will be difficult to get the price you want. Spend money and time landscaping your yard. Pressure wash your driveway. Paint your front door. Make your porch look welcoming. If you do all of this yourself or with the help of family and friends, the costs will be reasonable.

After a prospective buyer is impressed by your nicely kept lawn, you will want to continue impressing him/her with your interior design. Buyers know what they want when it comes to the number of bedrooms and baths. You have something they want or they wouldn't be looking at your home. Now, you need to keep their attention.

Freshening Up the Interior

Each room needs to be freshly painted in a neutral color. Old wallpaper and borders should be stripped and walls repainted. Make each room look larger by clearing any clutter. If possible, remove any unnecessary furniture and store it somewhere else. Have any carpets professionally cleaned, and be sure to polish any hardwood flooring. In the bedrooms, de-clutter your closets. Your kitchen and bathrooms should be sparkling. Clean and organize counters and cabinets. Again, most of these suggestions cost little but add great value to your home.

Upgrades

When you think of upgrades, you many automatically assume major costs with little return. However, many upgrades may be within your budget. Consider making some of these affordable upgrades to your home.

Living Areas/Family Rooms – If you're going for a more elegant touch, add some crown molding. For a more rustic feel, add box beams. Improving the ceilings of main rooms will add value to your home.

Hardware and Fixtures – Painting and changing the hardware on your cabinet doors can change the look of a room dramatically. Add new fixtures such as lighting and doorknobs for a more updated look.

Selling your home may require you to spend a little money, but you'll likely get the full value of your home.

Fed Not in a Hurry to Raise Rates: FOMC Meeting Minutes

Minutes of the Federal Open Market Committee (FOMC) meeting held January 27 and 28 were released on Wednesday. According to the minute's transcript, it appears that Fed policymakers are in no hurry to raise the target federal funds rate. Members said that raising rates too soon could swamp the strengthening economy and expressed concerns that changing the committee's current "patient" stance on rising rates could cause more harm than good to current economic conditions.

FOMC members discussed the Fed's use of the word "patient" in its guidance, and said that dropping the word could incorrectly suggest that the Fed is planning to act sooner than later on raising the Fed's target interest rates, and could result in "undesirably tight" financial conditions. While a majority of members agreed on protecting current economic conditions by raising rates too soon, member viewpoints varied on which conditions would support the first rate hike.

Target Inflation Rate of Two Percent "Most Consistent" with Fed's Statutory Mandate

According to the Federal Reserve's statutory mandate supplied by Congress, the Fed seeks to provide maximum employment, price stability and moderate long-term interest rates. The Fed established a target inflation rate of 2.00percent as a benchmark for economic health, but inflation has remained consistently below the target rate according to the annualized index reading for personal consumption expenditures.

FOMC members did not set a target rate for annual unemployment; FOMC members cited unpredictable "non-monetary factors that affect the structure and dynamics of the labor market" as reasons why it's impossible establish an accurate target percentage rate for national unemployment. The minutes caution that these factors are sufficiently unpredictable that they may cause the Fed to revise or reverse its policies concerning national unemployment readings.

Committee members noted that short-term fluctuations in the federal funds rate could be expected. The minutes indicated that in general, day-to-day fluctuations outside of the Fed's target range were not surprising as historical data indicated that such changes had "few if any implications for overall financial conditions or the aggregate economy."

FOMC members agreed that the economy had expanded at a solid pace, but noted that inflation had fallen due to rapid decreases in fuel prices.

Fed/FOMC Chair Janet Yellen did not hold a post-meeting press conference at the conclusion of January's FOMC meeting; she is scheduled to hold a press conference at the conclusion of the next FOMC meeting on March 18, 2015.

Saving Up for Your First Home? Our Guide to Finding Ways to Save Your Down Payment Faster

If your goal is to purchase a home, you may find that it’s challenging to save up enough money for your down payment. While this is something that many first time home buyers struggle with, it is by no means insurmountable. By making a few simple changes you will be able to accumulate the funds you need for your down payment.

Keep Track Of Your Spending

One of the reasons why it can be difficult to save money is that you aren’t even sure of where your money is going. While you may be aware of major expenses such as rent, car payments and utilities, it’s easy to lose track of many of the smaller bills and impulse purchases. If you aren’t keeping a budget, you should begin as soon as possible. Software programs and apps such as Mint.com can make this simple.

Consider If You Have Anything To Sell

You may be able to raise some quick cash by selling some personal belongings. Don’t part with something that will cause you regrets, such as a precious family heirloom. However, if you’re like many people, you probably have lots of items you no longer need. In addition to holding a garage sale, you could sell items such as jewelry, electronics, art or almost anything on eBay.

Refinance Credit Cards

Refinancing credit cards or any type of debt can help you save money on monthly bills. Balance transfers can often give you a more advantageous rate with credit cards. If you have a car loan, you may be able to find better terms with a different lender.

Find Another Source Of Income

In addition to finding ways to cut back on your spending, taking in some extra money every week can make it much easier to save up for that down payment. Perhaps you or your spouse could find time for a part time job. You might also consider starting a part time business, such as an online store that can be managed from home.

If you are creative about it, you can probably find many ways to save up for your down payment. You should also do plenty of shopping around when it comes to finding the best deal on a mortgage for your first home. Consult with a qualified mortgage professional to get an idea of what you can realistically afford.

What's Ahead For Mortgage Rates This Week - February 16, 2015

Last week's economic news included an index of labor market conditions provided by the Federal Reserve, a report on small business sentiment, and a report from the Labor Department on job openings. Weekly jobless claims, Freddie Mac's mortgage rates report and a report on Consumer Sentiment rounded out the week. The details:

Labor Market Conditions, Small Business Index Reports Fall

According to the January reading for a labor index report released by the Federal Reserve, labor market conditions declined from December's reading of 7.3 to January's reading of 4.9. This index is based on 19 economic indicators and January's reading was the lowest since September. The National Foundation for Independent Business (NFIB) reported that its index of small business sentiment fell to 97.9 in January as compared to December's reading of 100.4. Analysts said that this report reflected less optimism about business conditions and sales growth rather than concerns over spending and hiring plans.

In other labor–related news, the Labor Department reported that job openings rose to 5.03 million in December; this was 3.70 percent higher than November's reading and represented a year-over-year increase in job openings of 28.50 percent. In contrast, all hiring for 2014 increased by 12.50 percent, which suggested that employers may be having trouble finding employees with needed job skills.

Jobless Claims Rise, but Four Week Average Shows Drop in New Claims

According to the Labor Department's weekly Jobless Claims report, 304,000 new unemployment claims were filed, which once again positioned new jobless claims over the key benchmark of 300,000 new jobless claims filed. Analysts expected a reading of 296,000 new jobless claims based on the prior week's reading of 279,000 new claims. To put this in perspective, new jobless claims have fallen by 3250 claims over the past four weeks to a reading of 289,750 new claims. Economists say that the four-week average is a more accurate measure of developing trends, as week-to-week readings can be volatile.

Mortgage Rates Rise

Last week's only scheduled mortgage-related news was Freddie Mac's weekly survey of average U.S. mortgage rates. Rates were higher with the average rate for a 30 year fixed rate mortgage higher by 10 basis points at 3.60 percent. The average rate for a 15-year fixed rate mortgage rose by eight basis points to 2.99 percent. The average rate for a 5/1 adjustable rate mortgage jumped to 2.97 percent from the previous week's average of 2.82 percent. Average discount points were 0.60 percent for 30 and 15-year fixed rate mortgages and averaged 0.50percent for a 5/1 adjustable rate mortgage.

February's Consumer Sentiment Index dipped as fears of rising inflation caused consumer sentiment to dip from January's reading of 98.1 and expectations of February's reading at 98.5; unfortunately, February's actual reading fell short at 93.6. February's reading was a three-month low after January's reading hit an 11-year high. Fears of growing inflation were noted as an influence on the drop in consumer sentiment; fuel prices are rising, which will contribute to rising inflation.

What's Ahead

No economic reports were scheduled Monday due to the President's Day holiday. The National Association of Home Builders (NAHB) releases its housing market index report on Tuesday, Housing Starts will be released Wednesday along with the minutes of the most recent FOMC meeting. Weekly jobless claims, Freddie Mac's mortgage rates survey and Leading Economic Indicators round out this week's scheduled reports.

DIY Lovers: 'Greenify' Your Home with These Three Eco-friendly Home Improvement Projects

Are you a homeowner who is searching for ways to make your home a bit more eco-friendly? Equipping your home with "green" improvements can save a substantial amount of energy and money, especially over the long term.

In today's post we'll explore a few projects that handy do-it-yourselfers can undertake in order to make a home a bit friendlier to the local environment.

#1: Focus on the Windows

Depending upon the time of year, windows have an impact on both heating and cooling costs. In the summer, older windows can drastically heat up a home causing cooling costs to skyrocket. In the winter, older windows can leak cold air within the home and let out the heat, which causes the heating costs to rise as well.

A simple replacement of older windows can save a homeowner as much as 30 percent on annual energy costs, as newer windows are more efficient at insulating the home against the weather conditions outside.

Combining a window upgrade with other energy-related changes can lead to even greater savings. For example, consider installing a ceiling fan in rooms that are generally occupied – such as the living room or family room – as these can circulate cool and warm air and help to reduce energy use.

During the colder months, use as much solar heating as possible. Open up curtains, and trim trees to allow for natural light to enter the home. The sun heats up the home through radiant heating, which is an effective and essentially free source of energy.

#2: Improve Your Insulation

A home that is properly insulated will help to preserve its heat and cool air. Heat can leak out from the home through cracks, but it can also occur through convection heating. The air within the home will eventually cool down from a steady decline of heat when the heat is transferred outside through the walls.

Beyond hot and cool air leaking out from the home, each room within the home can indirectly influence the temperature in adjoining rooms. This is especially true for the garage and any room that shares common walls. By using insulation in the garage, the home may cool down by as much as 10 degrees Fahrenheit.

#3: Install Smart Thermostats

Some green options simply mean a change in which type of appliances are used. In terms of a thermostat, a "smart" one like the Nest Thermostat can be installed. Use of one can cut energy costs by 20 percent, at minimum, by simply adjusting to the homeowners' schedule.

Mortgage Refinancing: How to Ensure a 'Re-Fi' Makes the Most Sense for Your Financial Situation

Refinancing your mortgage can make good financial sense, as long as you are doing it for the right reasons. Before considering a refinance, it's worth spending some time to assess what your financial goals are.

Lowering Your Interest Rate

One of the most common reasons to refinance a mortgage is to take advantage of a lower interest rate. Because mortgages are long-term loans, even a slight drop in the interest rate on the loan can make thousands or even tens of thousands of dollars of difference over the life of the loan.

Before refinancing to get a lower rate, you'll want to ensure that you will stay in your house long enough to reap the benefit of the lower payment. For example, if your refinance is going to save you $50 a month and your closing costs are $3,000, you would need to stay in your home at least five years just to break even.

A Shorter Loan Term

Another common reason people refinance their mortgage is to shorten the term of the loan. Though a 30-year loan gets you a much lower monthly payment, you wind up paying much more in interest over the term of the loan. If interest rates drop significantly, you might be able to refinance into a 15-year loan and only pay a couple hundred dollars more a month, which, if you can afford it, will mean you pay off your house much faster and pay significantly less in finance charges.

Moving From A Variable To Fixed Interest Rate

If you got a loan with a variable interest rate, you likely will want to refinance at some point into a fixed-rate loan. When you do so, however, you want to make sure you are getting a better deal. If interest rates look like they are going to increase, that would be a good reason to move to a fixed-rate loan.

Getting Rid Of Mortgage Insurance

If you put down less than 20 percent of the purchase price of your home, you likely had to get mortgage insurance. Depending on the insurance policy and how quickly your home appreciates in value, it might be beneficial to refinance at some point if you have enough equity in your home to drop the mortgage insurance.

If you think the time is right to consider refinancing your mortgage, contact your trusted mortgage professional to get more information.

Three Excellent Reasons to Buy a Home So You Can Get out of the "Renting Rut"

Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks.

There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.

Build Equity

Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord's approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.

Save On Your Taxes

When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.

The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.

Put Your Personal Touch On Things

As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.

Renting a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.

Now that you know more about the benefits of buying a home and how that purchase can get you out of the rental rut you're in currently, turn to a mortgage professional for assistance.