04
Jan
By First Rate Financial Group
Mortgage

How To Keep Your Address Private

How To Keep Your Address Private There are not many parts of your life that are private anymore. Today, it is relatively easy for someone to go online and look up your address in just a few minutes. At the same time, there are some people who have an easier time keeping their lives private. Celebrities, public officials, and other people who are frequently in the public light are able to conceal their addresses. Even if you aren’t famous, what do you need to do to hide your address?

Talk To A Real Estate Agent

If you want to keep your address private, the first thing you should do is talk to your real estate agent. There is a great chance that they have worked with someone who wanted to keep their address private in the past, and they can provide you with a list of steps you should take. Make sure the home you purchase is pulled off the MLS quickly. That way, someone has to go to the local Town Hall if they want to look up your home.

Use A Trust

You may also want to consider placing your home in a trust. A trust will specify how your assets are distributed after you pass away. You can use a trust to hide real estate purchases, meaning that only the name of your trust is going to be listed in public records. That way, people cannot find your address by simply looking it up online, as they will simply see your trust represented.

Form An LLC

You may also want to consider forming an LLC, also known as a limited liability company. The vast majority of locations do not restrict LLC ownership. This means that you can set up an LLC, specify the LLC as the owner of the property, and keep your name out of the public light. You may want to reach out to an attorney who can help you form an LLC.

Keep Your Address Hidden

The internet is a powerful tool, but you should not resign yourself to having your address listed online. Consider checking out a few of these options, and reach out to a professional if you would like help hiding your address after you purchase a new house.

 

09
Dec
By First Rate Financial Group
Home Buyer Tips

Buying a Home in a Fire Risk Area: Here’s What You Need to Know

Buying a Home in a Fire Risk Area: Here's What You Need to KnowOutside of the significant financial responsibility of delving into home ownership, there can also be a lot of other risks involved that you may not have thought about before investing in a home. You’ll need to protect your home against theft or burglary. And homeowner’s insurance to protect your home and belongings is almost a requirement. But there are other less common occurrences you may not have thought about. If you happen to be living in an area that’s at high risk of fire, here are some things to consider beforehand.

Defining “High Risk”

It’s easy to be swept away by a beautiful home and forget about what the natural landscape around it consists of. Many homes across the United States are built in areas close to trees and shrubs, which can be dangerous in times of high temperatures, so it’s important to do your research. While hot spots can occur in many different areas, California and the southwest region are particularly vulnerable in times of drought.

What It Means For Your Mortgage

Nearly all homes can be adversely affected by a fire so it’s important to realize that buying in a high-risk area will not impact your ability to get a mortgage. It can, however, impact some of the costs associated with investing in your home. While homeowner’s insurance is a requirement of buying a home and it will generally cover you in the incidence of a fire, it can be a bit pricier. Fortunately, you may be able to guard against some of the additional costs by purchasing a home with materials that are more fire resistant.

In The Event Of Fire

If the worst happens and your home incurs damage from a fire, you’ll want to assess the extent of the damage before making a decision. For a home that is minimally impacted, you may want to use insurance to repair the property. However, if the property is significantly or completely destroyed, a payout may be required in order to pay off the mortgage. Before purchasing a home in a fire-prone area it’s best to be aware of all aspects of your insurance policy so you can be prepared.

It’s a more significant risk to buy a home in a fire-prone area, but you can be prepared for the worst by knowing your options. If you’re currently considering purchasing a new home, contact your trusted mortgage professional for more information.

02
Dec
By First Rate Financial Group
Home Mortgage Tips

Understanding ‘PITI’ and What Goes in to Your Monthly Payments

Understanding 'PITI' and What Goes in to Your Monthly PaymentsAsk any friend or family member that owns a home and they will share that it takes a bit of management to keep all the expenses under control. Let’s explore the concept of PITI and why it is vital to have a clear picture of how much your home is costing you each month.

Just What Is PITI, Anyway?

PITI is an acronym that stands for “principal, interest, taxes and insurance,” which are the four main components that make up your housing costs.

Principal – this is the amount that you are paying against the total amount that you borrowed when you purchased the home. For example, if you used a mortgage to cover $200,000 of the home’s purchase price, the remaining balance of that $200,000 is the principal. A part of your monthly mortgage payment goes to paying down the principal.

Interest – this is the extra cost that the lender charges for the service of lending you the principal amount. For most mortgages, you will see this expressed as an “interest rate” which is a small percent charged on the loan. A portion of your monthly mortgage payment goes to paying down the interest owed.

Taxes – tax costs are not included in your monthly mortgage payment, but will be added by your lender as part of your yearly expenses when calculating your debt-to-income ratio (see below). Property taxes and other assessments will need to be paid each year.

Insurance – this is the cost of insuring your mortgage and your home. Like taxes, your mortgage lender will typically include some insurance costs in your DTI ratio calculation.

How Lenders Use PITI

Many mortgage lenders use some form of PITI calculation when determining your debt-to-income ratio. This ratio helps the lender understand your ability to manage your monthly mortgage payments without being at risk of missing one. The lower the ratio, the more likely you can afford all your monthly expenses.

Don’t Forget Your Other Monthly Expenses

Finally, don’t forget that along with PITI you will have a variety of other monthly expenses that need to be budgeted for. Leave some space for utilities, repairs and other renovations that need to be made throughout the year.

Once you have the full picture of what is coming in and going out each month, managing your expenses is easy. When you are ready to discuss or apply for a mortgage, get in touch with us. Our friendly team of mortgage professionals is happy to help.