Real Estate Information

You may make a lot of financial investments in your lifetime, but owning a home is likely the largest investment you will ever make. Because it is such a large investment, it takes a long time to pay it off. In fact, it can feel like it takes a lifetime to finally own your home outright. But the truth is, there are ways to shorten the process so that you can pay off your mortgage sooner rather than later.

Here are some options for paying off your mortgage’s entire principal (plus interest) quicker:

• Biweekly Payments

Most people make mortgage payments monthly. But if it’s within your budget AND your lender allows it, you can make two payments every month. When you make biweekly payments, they still must equal the amount of your required monthly payment. However, remember that every time you make a payment it goes toward the interest you’ve accrued first. By making payments every two weeks, that leaves less time for interest to increase. That means more of your money will go towards your principal balance, thus allowing you to pay off your mortgage faster. Keep in mind that not all lenders will accept biweekly payments, so be sure to check with them first.

• Unexpected Income

Any substantial and unforeseen monetary gain is a “windfall”. Windfall income is exciting and can be used in a plethora of ways. If the idea of paying on your mortgage for 30 years, you may want to consider using windfall income to pay of your loan faster.

Examples of windfall income are:

• Credit card cash-back rewards
• Tax refunds
• Inheritance
• Lawsuit settlements
• Property sales
• Raises
• Work bonuses
• Lottery winnings

Not everyone will have windfall income during their life, but for those who do, it can be a great way to put a dent in your mortgage’s outstanding balance.

• Refinance to a Shorter Loan Term

If paying off your mortgage faster is a goal for you, refinancing to a shorter loan term is a great way to do it. Refinancing involves paying off your existing mortgage so you can replace it with another in order to save money or pay off your loan sooner. You might be surprised to discover that changing from a 30-year to a 20- or 15-year loan will only raise your monthly payment by a few hundred dollars. So, if your financial status has improved since you first purchased your home, and your budget can withstand a larger payment, you can knock thousands of dollars in interest off the life of your loan. It’s a good idea to shop around for the best rate if you want to refinance, as you don’t have to stay with your current lender.

• Make Extra Payments Towards Principal

The “principal” of your mortgage is the amount you borrowed and have to pay back. Your monthly payments usually include your principal, interest, insurance and taxes. You can pay off your mortgage more quickly by simply paying extra towards your principal occasionally or even making an extra, large payment towards your principal once a year. You can do this with money you have budgeted for that purpose or if your income has changed in a way that allows for it.

If you are considering options to pay your mortgage off faster, the first step to take is to speak with a mortgage banker. They have the expertise to give you the best advice for practical solutions that will work for you.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: cnn.com, clearpoint.org, mtgprofessor.com

24 N Lewis Street, Montgomery, AL  36107

MLS# 523354

2 Bedrooms | 1 Bath | 956 square feet | Capitol Heights

This precious gem in Capitol Heights is pristine and ready to move into! With its close proximity to downtown, this is the perfect spot for anyone that works in or loves the dining and entertainment in downtown Montgomery. Living room boasts decorative fireplace and glass front cabinets for books or displaying collectibles. Like-new roof, fresh paint, and beautiful hardwood floors, plus a cozy covered front porch and rear deck for your outdoor pleasure. Small easy to manage front and back yards means you won’t be spending all afternoon doing yardwork. Pull-down stairs lead to loads of extra storage in the attic, and there is a detached storage building out back that would make a great workshop. All electric, so no gas bill!

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team

Do you have more house than you need? Perhaps you’ve recently become an empty-nester and don’t need a home spacious enough for a large family anymore. Or maybe you are just tired of trying to keep up with the cleaning and maintenance that a large property requires. Whatever the reason, maybe it’s time to consider downsizing.

Here are 5 perks of downsizing to a smaller home:

1. YOU WILL SPEND LESS MONEY

You will not only save on your monthly mortgage payment in a smaller home, you will also save money on frivolous living. One of the advantages of downsizing your home is that you can stop wasting money on furniture and home décor that are used to fill space rather than to fulfill a function. Filling a smaller space will allow you to prioritize what items are important and necessary for you.

2. THERE WILL BE LESS STRESS

After working hard all week to pay the bills, it’s no fun to have to spend your weekend doing chores. A smaller home equals fewer chores and less upkeep. This will free up time to enjoy leisure activities, hobbies, and relaxation. Imagine weekends spent doing fun outdoor activities, spending time with family and friends or just simply chilling out and reading a good book. Those things sure sound a lot less stressful than doing endless yardwork and household chores.

3. YOU WILL REDUCE YOUR CARBON FOOTPRINT

If you live in a large home, you know that energy costs can be expensive. Smaller homes will not only save you money on heating, cooling, and water costs, it will also allow you to reduce your carbon footprint.

4. IT WILL FREE UP TIME FOR TRAVEL

With additional disposable income and less upkeep needed, a smaller home will afford you the time and cash for travel and adventure. Weekend getaways or even long trips are less of a hassle now that you don’t have to worry about doing lots of home maintenance and being house-poor.

5. IT PROVIDES A FRESH START

Downsizing can be the beginning of a new chapter in your life. If being an empty-nester has you feeling down, a lifestyle change might be just what you need to start focusing on how you want to spend your time, money and energy. 

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: moving.com, nbcnews.com, sixtyandme.com

2428 Cherry Street, Montgomery, AL 36107

MLS# 523001

4 Bedrooms | 2 Baths | Duplex | Highland Park

This well-maintained duplex has great rental history and would make a fine addition to any investment portfolio! Right side unit is handicap/wheelchair accessible. All electric units so tenants don't have to deal with gas. Windows replaced about 4 years ago, bathrooms and kitchens updated as well. Great cash flow!

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team!

Today’s homebuyers are much more environmentally conscious, and they are looking for homes that are eco-friendly. Luxury homebuyers especially want design elements that support sustainability. The National Association of Realtors 2022 Report on Sustainability states that 63% of members noted that promoting energy efficiency in listings was valuable to them. In addition, millennials are big proponents of “green” living and with them currently making up 43% of home buyers, there will be a large desire for eco-friendly homes that will play a part in protecting the planet.

So, how do you make your home eco-friendlier?  It is surprisingly easy to upgrade your home with green features, while keeping it aesthetically pleasing. Here are some ways to get started:

1. USE ENERGY-EFFICIENT LIGHTBULBS

While they have been around for many years, lots of homeowners are just now beginning to use energy-efficient lightbulbs. They have many benefits, including reducing electricity use and extending the life of the bulb. Per Every Day Health, if each American household exchanged one lightbulb for an energy efficient one, the country would save enough energy to light up to 2.5 million homes each year, and save $600 million in energy costs! One of the most common types of energy efficient lighting are LED bulbs. They come in a larger variety of colors and styles and fit into current fixtures, making switching to energy efficient bulb one of the easiest ways to go green.

2. MAKE YOUR HOME A “SMART” ONE

Many people may think having a “smart home” is out of reach; that it is something only luxury homeowners can afford. But truthfully, it is one of the best ways to make your home eco-friendly and in the long run, it will save money. Home automation allows appliances to run with the lowest amount of energy required, thus creating lower bills for the homeowner. Automated controls save money, time, energy and reduce your carbon footprint. It is a win for everyone to add smart home technology!

3. INSTALL A “GREEN ROOF”

The desire to eat healthy has many people participating in home gardening. With that in mind, urban homeowners have started installing green roofs. There are many benefits to green roofs; they don’t require a backyard, they provide natural cooling, and they are aesthetically pleasing. But most importantly, they are energy efficient. During the summer a green roof protects the building from direct solar heat. When winter arrives, it minimizes heat loss thanks to the extra insulation on the roof. And finally, thanks to the energy conservation it provides, there are fewer greenhouse gas emissions.

4. CREATE A “LIVING WALL”

If you enjoy gardening and desire to be environmentally friendly, consider creating a living wall in your home. Not only is a living wall a beautiful, organic addition to your living room, entryway, or terrace, but it is also very eco-friendly. It provides natural insulation, reduces energy consumption, and aids in humidity level maintenance. Living Walls are especially popular in hot climates because they require less energy to cool your home.

5. CHANGE TO LOW-FLOW SHOWERHEADS

Did you know that showers make up about 30% of household water use? If you want to conserve water, switching to a low-flow showerhead is the way to do it. It is possible to save approximately 2,900 gallons of water yearly by using low-flow showerheads! Not only will you decrease your home’s water consumption by installing low-flow showerheads, but you will also save energy, lower heating expenses, and reduce your monthly water costs.

These are just a few ways to begin making your home as environmentally friendly as possible. We only have one earth…let’s all do what we can to take care of it!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: housing.com, homeselfe.com, safewise.com, smartcitiesoworld.net, thestar.com, hgtv.com

922 Ryan Street, Montgomery, AL   36107

MLS# 521545

2 Bedrooms | 1 Bath | 1,512 square feet | Highland Park

This Highland Park cottage is cute-as-a-button! And, move-in ready! Nice hardwood floors, built-in china cabinet in dining room, and updates to the kitchen and bath. Both bedrooms are well proportioned. Large, fenced back yard is great for pets, and there is a large workshop/storage building out back with a roll-up door for storing riding lawn equipment. Great starter home or investment property. Has rented in the past for $850/month.

Marketed by Montgomery AL Realtor, Billy Young, Sandra Nickel Hat Team!

Let’s face it - relocating is overwhelming no matter how well you prepare. There are what seem like a million little pieces that all must fall into place to make a move go smoothly. And even then, it is stressful. You are upending your life; putting everything you own into boxes and bags and making big changes. So, it’s easy to understand how some tasks fall through the cracks and are forgotten. Here are some crucial things that many people forget to do (or don’t even realize need to be done) when moving:

1. Cancel recurring charges for local memberships. During the chaos of moving, the last thing you are likely to think about are membership fees for things that may not transfer to your new place of residence, like a gym membership.  And if those fees are automatically charged to your credit or debit card you need to cancel those memberships at least a month before you move so that you don’t continue to get charged even when you’re not there to use them any longer.
    
2. Call your car insurance company. Per the Department of Motor Vehicles, it is vital to check on your car insurance when moving, as states have varying levels of required coverage. In fact, insurance rates can even vary from neighborhood to neighborhood in the same city. So, make sure you call your insurer before you move to see if you need to update or change your coverage at your new address.
   
3. Change your address early. Changing your address is easy using the online form provided by the U.S. Postal Service, but do not wait until the last minute to do it! If you want to be sure that your mail arrives at your new home in a timely manner, complete the form about two weeks before you move. 
    
4. Take care of your finances. During the whirlwind of moving, it is easy to forget the everyday tasks that are a normal part of your routine…like paying bills. It is also easy to lose track of paper bills among all the boxes you’ve packed. Take the time to set up auto pay for things at your new home like mortgage/rent, phone, utilities etc. This can help assure an on-time payment during a hectic time. Designate a spot for mail both in the home you are packing up and in your new home so that paper bills are not lost in the shuffle.
    
5. Change your billing address on credit cards. Don’t get caught by surprise when your billing address does not match the address on your credit card because you forgot to change it when you moved. Some transactions now require that you put in your billing zip code when using your card, so if that has changed, then you need to change it on your credit cards as well. The last thing you want is to deal with a transaction being denied and then finding out it was simply because you had not changed the address on your card.
   

Yes, relocating is stressful. But taking care of these often-overlooked tasks will make it a little bit easier!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals to assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: hrkfamilylaw.com, blog.hireahelper.com, home.com

1123 Westmoreland Avenue, Montgomery, AL 36106

MLS# 520100

3 Bedrooms | 2 Full Baths | 1,975 square feet | Cloverdale

Welcome to this mid-century home in the heart of Cloverdale! Situated on a corner lot, this contemporary Midtown Montgomery home has an open floorplan that centers around a fabulous modern kitchen with a copper island with plenty of workspace and storage. The large living room has built-in bookcases surrounding a wood burning fireplace, wall of floor to ceiling windows and an adjacent sunroom/den/workout room with doors leading to the brick patio which overlooks the saltwater pool - incredibly low maintenance and a lovely yard. Other features include updated bathrooms, wood flooring, a separate laundry room, a wonderful, raised bed for gardening and a carport. Yes, covered parking! The Community Garden is just next door and walking distance to both Fairview and A&P restaurants, shops and entertainment. Check it out today!

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

2172 Campbell Road, Montgomery, AL 36111

MLS# 519270

4 Bedrooms |  3.5 Bathrooms |  4,259 Square Feet |  Allendale 

Welcome to your own private oasis in the heart of Allendale! This beautifully restored contemporary home has new landscaping, sits on almost an acre lot and on a cul-de-sac, which offers a gorgeous setting that feels like you are far away from the city. This Midtown Montgomery home has a wonderful open floor plan perfect for entertaining family and friends. The wide hallway lined with built-in bookshelves leads to the great room with recently updated kitchen with a new island and new countertops, a dining area and living room with a wall of windows overlooking the fabulous courtyard and back yard. At the end of the hall is a huge master suite with its own private deck. Special features are new wide planked wood flooring, spacious bedrooms, sleek bathrooms, a wood burning fireplace and large laundry room. Truly a unique property that is definitely worth seeing in person!

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

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When you are considering the purchase of a new home, one of the first things to think about is if you will be able to get a mortgage loan. At the start of the home buying process, you will hear terms like “pre-qualification”, “pre-approval”, and “conditional approval”.  If you are not familiar with these terms and their meanings, it can add to the already stressful process of entering the housing market as a buyer.

While all these terms may sound similar, they are not the same. Pre-qualification, pre-approval, and the conditional approval letter share common characteristics, but they occur at different times during your journey to home ownership. Having a clear understanding of what they mean will save some of the confusion, time and energy that goes into finding the right home for your budget and your family.

Let’s take a look at each of these terms:

PRE-QUALIFICATION

Getting pre-qualified for a mortgage loan is the earliest step of the three terms we are looking at. A pre-qualification will give you an estimate of how much you may possibly be able to borrow from a lender. Basically, you will provide information such as your financial history and credit report to your lender. You can do this verbally at this stage as it is not an overly comprehensive process. Your lender will use the information provided and will give you an estimate of the amount you may qualify for. This will allow you to explore the mortgage options available to you.

After your lender has determined the amount you pre-qualify for, you will receive a pre-qualification letter. By sharing this letter with your Realtor, they can use it when making an offer to a seller to give evidence of your commitment to and preparation for buying a home.

Remember, a pre-qualification is not a guarantee for a loan. While it is a great way to determine what types of loans are available to you, it does not mean a loan for the amount of the home you hope to purchase is a sure thing.

PRE-APPROVAL

Getting a pre-approval is a more formal process that requires an in-depth investigation of your finances. This process will take place after you have submitted your mortgage application and documentation will be required.

Your lender will need the following:

• Employment verification (W-2s or 1099s)
• Bank statements
• Retirement and brokerage account statements
• Any other assets
• Current real estate debt or rental statements
• Monthly debt payments (student loans, auto loans)
• Court orders (divorce, child support, alimony, etc.)
• Tax returns

It may feel overwhelming to provide so much personal, financial information, but it is necessary to obtain a pre-approval for a mortgage loan. Like pre-qualification, you will get a pre-approval letter if your application is accepted by your lender. This letter provides the sellers with the information they need to know that you can afford the mortgage payment and you are ready to purchase a home.

When competing for a home with other buyers, a pre-approval letter can be a game changer, making you look like a serious buyer over others who may not have a pre-approval letter yet.

CONDITIONAL APPROVAL

Conditional approval is also known as “up-front underwriting”.  If you choose this option, your lender will review your finances thoroughly in order to provide you with an exact loan approval amount for the specific home on which you are submitting an offer.

What makes a conditional approval letter different from a pre-approval is in the name itself; there will be a few conditions that must be met before closing. For example, purchase agreements, title verifications, home appraisal, and inspections must all be complete and in order. The closing process cannot begin until all the conditions listed in the letter have been met.

Pre-qualification, pre-approval, and the conditional approval letter all provide validation to both your lender and the seller that you are a serious buyer that can afford the home.

They each serve the same purpose, but you will encounter them in different circumstances within the home buying process. Understanding the nuances and differences now will make you a better-informed buyer and will make the home buying process less stressful for you!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: PYMNTS.com, Investopedia.com, debt.com, texaslending.com