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Table of Contents

FAQ

What is the VA Loan Limit?

2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $548,250* (Call 888-573-4496 for details).

How to Apply for a VA Home Loan?

This is a quick look at how to apply for a VA home loan in Plumas County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Plumas County. If you have any questions, you can call us at VA HLC and we’ll help you get started.

  1. Get your Certificate of Eligibility (COE)
    • Give us a call at (877) 432-5626 and we’ll get your COE for you.
  2. Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
  3. Get pre-approved, to get pre-approved for a loan, you’ll need:
    • Previous two years of W2s
    • Most recent 30 days paystubs or LES (active duty)
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
  4. Find a home
    • We can help you check whether the home is in one of the Plumas County flood zones
  5. Get the necessary inspections
    • Termite inspection: required
    • Well or septic inspections needed, if applicable
  6. Get the home appraised
    • We can help you find a VA-Certified appraiser in Plumas County and schedule the process
    • Construction loan note: Construction permit/appraisal info
      1. Building permit
      2. Elevation certificate
  7. Lock in your interest rates
    • Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
  8. Close the deal and get packing!
    • You’re ready to go.

What is the Median Home Price?

As of March 31st, 2021, the median home value for Plumas County is $294,510. In addition, the median household income for residents of the county is $55,359.

How much are the VA Appraisal Fees?

  • Single-Family: $600.
  • Individual Condo: $600.
  • Manufactured Homes: $600.
  • 2-4 Unit Multi-Family: $850.
  • Appraisal Turnaround Times: 7 days.

Do I need Flood Insurance?

  • The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
  • In Plumas County, rivers like the Middle Fork Feather River and Wolf Creek have flood hazard areas around them. However, the city of Quincy can see significant flooding around Spanish Creek which crosses through the north.

How do I learn about Property Taxes?

  • Charles W. Leonhardt is the Plumas county tax assessor. His office can be reached at 1 Crescent Street Quincy, California 95971. In addition, his office can also be reached by calling (530) 283-6380.
  • The state of California offers incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are the California Competes Tax Credit which offers qualifying businesses with a tax credit, and the New employment Credit which offers a tax credit for taxpayers who hire full-time employees. Furthermore, the state offers several other programs to further diversify the state’s economy.

What is the Population?

  • The county’s population of 18,807 is 83% White, 9% Hispanic, and 3% American Indian.
  • Most county residents are between 18 and 65 years old, with 17% under 18 years old and 28% older than 65.
  • In total, the county has about 8,047 households, with an average of two people per household.

What are the major cities?

The county has one city and 46 census-designated places, including Quincy, which serves as the county seat.

About Plumas County

Plumas County is full of beautiful streams, rivers, and forests covering about 70% of the county. However, the most significant employment industries in the county are health care, retail trade, and construction. Hence the most common types of employment are administrative support, food preparation, and construction.

In addition to its existing industries, the county is also taking an active role in helping small businesses within the county grow. The county has a partnership with the U.S. Small Business Administration, which provides free business counseling, SBA guaranteed business loans, home & business disaster loans, and federal government contracting.

When it comes to education, the county is home to the Plumas Unified School District, which has eleven schools that serve about 2,147 students annually. In addition, higher education opportunities are also available in the county with the Feather River Community College District, which offers 4-year degree bachelor programs.

Finally, the county is also a perfect place for people who enjoy the outdoors, with places like Bald Eagle Mountain, Dixie Mountain, and Lake Almanor. Furthermore, both visitors and residents can enjoy the county’s many trails, camping grounds, and water-based recreational activities for the whole family to enjoy. 

Veteran Information

The county is currently home to 1,852 veterans.

  • Plumas County is home to one VFW post:
    • Post 3825 Kenneth M. Hayes – 292 Lawrence Street, Quincy, CA 95971.
  • County Veteran Assistance Info.
    • Plumas County Veterans Services Office – 270 County Hospital Road, Suite 206, Quincy, CA 95971.

Apply for a VA Home Loan

  • For more information about VA Home Loans and how to apply, click here.
  • If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.  
  • VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.

VA Approved Condos

There are no VA-approved condos available in Plumas County. Although if you’re still interested in getting a condo through the approval process, call us at (877) 432-5626.

California VA Loan Information

VA Loan Information by State

Source: vahomeloancenters.org

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Do you need extra money to help pay for home improvements, debt consolidation, or unexpected car repairs? Consider tapping into your home’s equity through a cash out refinance or home equity loan. 

Both loan options allow homeowners to access their home’s equity to finance a variety of things, but you need to compare cash-out refinance vs. home equity loan to decide what’s best for you.

What Is a Home Equity Loan?

Home equity loans offer homeowners a way to borrow money against the amount of equity in their homes. Home equity is the difference between what you owe on your mortgage and the home’s current market value. Home equity loans are also called second mortgages because they’re a separate loan payment in addition to your mortgage. 

Because your home also serves as collateral for the loan, failure to make payments could lead to foreclosure. Since homeowners take on more risk with a home equity loan, lenders typically offer lower interest rates than they would for an unsecured loan.

How Does a Home Equity Loan Work?

When you take out a home equity loan, the lender will approve the loan amount based on the percentage of equity that you have in your home. 

The lender may allow you to borrow 80% to 85% of your home’s value, minus what you owe on the mortgage. Other requirements for a home equity loan include having a good credit score, a low debt-to-income ratio, and a steady source of income.

Once approved for the loan, your lender will provide loan disclosures stating the amount you’re borrowing, your interest rate, and any fees that you must pay. Common fees in closing costs include an origination fee, appraisal fee, document preparation fees, broker fees, and application fees. Some lenders may reduce or waive these fees altogether. 

A home equity loan is paid out in a lump sum and tends to be fixed-rate. You’ll need to repay the loan in fixed monthly installments that include the principal and interest. Repayment periods vary but are usually between five and thirty years.

Looking to take out a home equity loan? Find a Total Mortgage branch nearest to you and chat with one of our mortgage specialists to discuss your options.

What Is a Cash Out Refinance?

A cash out refinance is another way to take advantage of the built-up equity in your home. A cash out refinance allows homeowners to take out a new mortgage, up to 80% of the value of the home, for more than what is owed on the house. 

This new mortgage pays off the old mortgage and the difference between the two, minus closing costs, is paid out in cash. This new loan is larger and may come with different terms.

How Does a Cash Out Refinance Work?

A cash out refinance is similar to a traditional refinance. You can shop different lenders and compare quotes, submit an application and required documentation, get approval, and wait for your payment. 

You’ll also need to meet basic requirements for a cash out refinance, but these vary by lender. 

Common requirements include:

  • Have a credit score of at least 620
  • A debt-to-income ratio of 43% or less
  • At least 20% equity in your home

To illustrate, let’s say you have a mortgage balance of $125,000 and the market value of your home is $300,000. 

If you’re borrowing 80% of your home’s value, you’d be able to take out $115,000 for a loan balance of $240,000. This means you have $115,000 to use on almost anything you please, whether that’s a vacation, a wedding, or your education. 

Cash Out Refinance vs. Home Equity Loan Similarities

When comparing a cash out refinance and a home equity loan, both options allow homeowners to borrow money against the amount of equity in their homes. No matter which option you choose, both pay almost immediately and you can use that money to pay for anything you need. 

A cash out refinance and home equity loan also have similar borrowing requirements. If you’re eligible for a home equity loan, you’re more than likely eligible for a cash out refinance as well. However, this also varies by lender.

Both options also allow you to borrow the same amount — up to 80% of the current value of your home.

Cash Out Refinance vs Home Equity Loan Differences

Cash out refinance payments are often easier to manage because they replace your existing home loan. Home equity loans are another monthly loan payment along with your mortgage payment.

A cash out refinance may also come with lower interest rates because they’re considered first-lien debt, which is paid out first to debt holders in the event of a foreclosure or bankruptcy. However, the higher interest rate on a home equity loan may be offset by low or no closing costs. 

Which Is the Smarter Option? Cash Out Refinance or Home Equity Loan

If you’re deciding between a cash out refinance vs home equity loan, a cash out refinance might make more sense if you’re eligible for a lower interest rate. But if you plan to take out a larger portion of equity or cannot find a lower interest rate when refinancing, a home equity loan may be worth considering.

What you choose may also depend on the amount of equity you’ve built in your home, your creditworthiness, and lenders’ current offers. Both options have their own benefits and drawbacks, which is why it’s essential that homeowners do their homework to learn which option is best for their situation.

Learn More About Your Options With Total Mortgage

Luckily, homeowners have options when it comes to unlocking their home equity. If you’re deciding between a cash out refinance vs. home equity loan, Total Mortgage has you covered. 

Total Mortgage has been helping homeowners and buyers get the financing they need for over 20 years. Visit one of our branches and talk to a specialist or apply online today.

Source: totalmortgage.com

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About the series…

When most people talk about money management, they discuss tactics. Occasionally, you’ll encounter someone who elevates the discussion to strategy, rather than simply scattershot tactics.

But what’s missing from both conversations — both tactics and strategy — is a wider-lens look at how to become a better thinker; how to become a crisp, clear decision-maker.

How to think from first principles. How to better your brain. How to cultivate the wisdom to know the next move.

This series is an attempt to bring first principles thinking into the conversation around money. Welcome to the inaugural post.

[Quick recap] If you read the first issue of this series, you know I’m hyped about rethinking the FIRE philosophy into four pillars:

Financial psychology — This is the foundation of everything.

Investing — Let’s be honest: technically, you don’t need the “RE.” You can stop at “FI.” If you master your inner psychology and invest in your 401k, IRA and other brokerage accounts, you can live a wealthy and wonderful life. The “FI” is mandatory for everyone; the “RE” is optional.

Real estate — It’s a hybrid between owning an investment and running a business, so the “R” fits perfectly between “I” and “E.” Did someone say “mashup?”

Entrepreneurship — The last on the list because it’s the toughest, but this is where near-infinite potential lives. You’ll want to focus on F, I, and mayyyybe R first, before you tackle this tough cookie.

Financial Psychology

We recently re-ran one of my favorite episodes on the podcast: an interview with behavioral economist Kristen Berman, who states – among other things – that habits are overrated.

Wait … what? Habits are overrated? But … but … aren’t habits the cornerstone of, like, everything?

Nope, according to Berman. Habits are an excellent second choice.

Automation is more powerful than habits. The best upfront use of your time is to set up systems — e.g. automatic transfers and deposits. Habits are a fallback option for anything that can’t be automated.

Systems are likely to stick longer. Your automations don’t crack when you take a two-week beach vacation. Your habits, by contrast, might take the holidays off.

Systems rely on software. Habits depend on humans.

And in the end, the robots always win.

Investing

Successful investors tend to fall into two camps: those who are great at making returns, and those who are great at keeping their returns.

Those who are great at making huge returns are the ones who risk it all; they bet big on a handful of individual stocks, or they bought crypto in huge quantities during the early days, and their speculation paid off.

Our collective sense of survivorship bias applauds them.

But their risky behavior doesn’t stop. They double down again and again, until eventually they lose much of their returns.

Easy come, easy go.

By contrast, the investors who are great at keeping their returns often invest with a methodical, long-term, wide-lens approach.

It takes them decades, rather than mere years, to build their wealth. But once built, they tend to be more adept at keeping it.

SPOTLIGHT ON…

What tools are kick-ass at financial automation?

One of my favorites is Acorns, which automatically rounds up your purchases and invests the difference.

If you spend $1.73 on a coffee (wait, can you still get coffee for $1.73?? okay fine, if you spend $1.73 on … um … a bag of peanut M&M’s?), the tiny robots will round your purchase up to $2 and invest the difference, $0.27, into your Acorns account.

You can choose your favorite investing style (aggressive, moderate, conservative), or double the round-ups if you’re feeling spicy.

My personal tally? Welp, here it is:

So if I’m spending too much, or too often … at least I’m investing, too.

Check out Acorns here (you’ll also get a $5 bonus).

Real Estate

Many people have some variation of the following question:

“I’d like to buy an investment property. And I’d like to _____ [insert personal use here] _____ when it’s not rented out.”

For example, “I’d like to …”:

  • … use it as a summer/winter home.
  • … use it for a month or two every year.
  • … have my aging grandparents or parents live there.
  • … turn it into a home office temporarily or seasonally, like during the summers.
  • … let my kids live there after they move out.
  • … provide a home to my brother or sister while they’re getting back on their feet.

That’s fantastic. But that’s not an investment property.

There’s a difference between buying an investment property vs. monetizing a property while it’s not in use.

The former requires cold, hard math. Your personal preferences don’t enter the picture. You make spreadsheet-based decisions with Spock-like reason.

The latter’s existence is based on your personal preferences. Every decision, from location to layout to square footage, is influenced by your homeownership ideals.

On the surface you’re performing the same act. You’re purchasing a property, and then renting out said property. You’re advertising the vacancy, collecting rent checks, performing routine maintenance and repairs, and paying taxes as a landlord.

But there’s a huuuuge difference between the decisions you make when you’re selecting each type of property.

Many homebuyers get smacked upside the head with problems when they don’t understand which set of objectives they’re chasing.

They take their cues from the wrong group. They use the wrong formulas. They play the wrong game, follow the wrong rules, track the wrong scoreboard.

The home they purchase ends up being the wrong candidate for the job.

And that’s a six-figure mistake.

In our course, Your First Rental Property, we teach our students how to clarify exactly what they want in an ideal property, so that they never take cues from the wrong voices.

Entrepreneurship

Let’s keep this simple:

  • “Do I need business cards?”
  • No.
  • “Do I need a business plan?”
  • Meh. Maybe something that’s simple enough to scrawl on a napkin.
  • “Do I need a suit?”
  • Why, are you a funeral director?

Stop playing business. You’re not a little kid on a playground; starting a business by printing business cards is a grown-up version of make believe.

No matter what type of business you’re running — whether you’re dog-walking for extra income or freelance coding for the local university — you need two things:

  • Either a product or service
  • Someone who thinks your product or service is valuable enough to purchase

That’s it. Forget the business cards. Focus on (1) figuring out what product or service you can offer the world, and (2) telling the world* about it.

*You’ll want to narrow down “the world” into something more targeted. Like, tell Bob. Especially if Bob has a dog that needs walking, or if Bob hires freelance coders for the local university.

Wahoo!! You’ve finished reading Issue #2 of the First Principles series!

I hope this series inspires you to think, learn and take massive action.

Click here if you want future posts like this straight to your inbox with more thoughts, ideas and insights on a new take on FIRE.

See you soon!

Source: affordanything.com

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Conventional loans are the most popular kind of mortgage, but a government-backed mortgage like an FHA loan is easier to qualify for and may have a lower interest rate. FHA home loans have attractive qualities, but borrowers should know that mortgage insurance usually tags along for the life of the loan.

As of March 2023, new FHA borrowers will pay less for insurance. The Biden-Harris Administration announced it was reducing premiums by .30 percentage points, lowering annual homeowner costs by $800 on average. The administration hopes the cuts will help offset rising interest rates.

What Is an FHA Loan?

The Federal Housing Administration has been insuring mortgages originated by approved private lenders for single-family and multifamily properties, as well as residential care facilities, since 1934.

The FHA backs a variety of loans that cater to the specific needs of a borrower, such as FHA reverse mortgages for people 62 and older and FHA Energy Efficient Mortgages for those looking to finance home improvements that will increase energy efficiency (and therefore lower housing costs).

But FHA loans are most popular among first-time homebuyers, in large part because of the relaxed credit requirements.

Recommended: Tips to Qualify for a Mortgage

FHA Loan Requirements

If you’re interested in an FHA home loan to buy a single-family home or an owner-occupied property with up to four units, here are the details on qualifying.

FHA Loan Credit Scores and Down Payments

Borrowers with FICO® credit scores of 580 or more may qualify for a down payment of 3.5% of the sales price or the appraised value, whichever is less.

Those with a poor credit score range of 500 to 579 are required to put 10% down.

The FHA allows your entire down payment to be a gift, from a family member, close friend, employer or labor union, charity, or government homebuyer program. The money will need to be documented with a mortgage gift letter.

FHA Loan DTI

Besides your credit score, lenders will look at your debt-to-income ratio, or monthly debt payments compared with your monthly gross income.

FHA loans allow a DTI ratio of up to 50% in some cases, vs. a typical 45% maximum for a conventional loan.

FHA Mortgage Insurance

FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% of the base loan amount, which can be rolled into the loan. As of March 2023, monthly MIP for new homebuyers is 0.15% to .75% — most often 0.55%.

For a $300,000 mortgage balance, that’s upfront MIP of $5,250 and monthly MIP of $137.50 at the 0.55% rate.

That reality can be painful, but MIP becomes less expensive each year as the loan balance is paid off.

There’s no getting around mortgage insurance with an FHA home loan, no matter the down payment. And it’s usually only shed by refinancing to a conventional loan or selling the house.

FHA Loan Limits

In 2023, FHA loan limits in most of the country are as follows:

•   Single unit: $472,030

•   Duplex: $604,400

•   Three-unit property: $730,525

•   Four-unit property: $$907,900

The range in high-cost areas is $1,089,300 (for single unit) to $2,095,200 (four-unit property); for Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the range is $1,633,950 (for single unit) to $3,142,800 (for four-unit property).

FHA Interest Rates

FHA loans usually have lower rates than comparable conventional loans.

The annual percentage rate (APR) — the annual cost of a loan to a borrower, including fees — may look higher on paper than the APR for a conventional loan because FHA rate estimates include MIP, whereas conventional rate estimates assume 20% down and no private mortgage insurance.

The APR will be similar, though, for an FHA loan with 3.5% down and a 3% down conventional loan.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

FHA Income Requirements

There are none. High and low earners may apply for an FHA loan, but they must have at least two established credit accounts.

Recommended: How to Afford a Down Payment on Your First Home

Types of FHA Home Loans

Purchase

That’s the kind of loan that has been described.

FHA Simple Refinance

By refinancing, FHA loan borrowers can get out of an adjustable-rate mortgage or lower their interest rate.

They must qualify by credit score and income, and have an appraisal of the property. Closing costs and prepaids can usually be rolled into the new loan.

FHA Streamline Refinance

Homeowners who have an FHA loan also may lower their interest rate or opt for a fixed-rate FHA loan with an FHA Streamline Refinance. Living up to the name, this program does not require a home appraisal or verification of income or credit.

The new loan may carry an MIP discount, but you’ll pay the upfront MIP in addition to monthly premiums. An exception: The upfront MIP fee of 1.75% is refundable if you refinance into an FHA Streamline Refinance or FHA Cash-out Refinance within three years of closing on your FHA home loan.

Closing costs are involved with almost any refinance, and the FHA doesn’t allow lenders to roll them into a Streamline Refinance loan. If you see a no closing cost refinance for an FHA loan, that means that instead of closing costs, a lender will charge a higher interest rate on the new loan.

You’ll continue to pay MIP after refinancing unless you convert your FHA loan to a conventional mortgage.

FHA Cash-Out Refinance

You don’t need to have an FHA loan to apply for an FHA Cash-Out Refinance. Whatever kind of loan the current mortgage is, if the eligible borrower has 20% equity in the home, the refinanced loan, with cash back, becomes an FHA loan.

The good news: Homeowners with lower credit scores may be approved. The not-great news: They will have to pay mortgage insurance for 11 years.

Any cash-out refi can trigger mortgage insurance until a borrower is back below the 80% equity threshold.

FHA 203(k) Loan

In addition to its straightforward home loan program, the FHA offers FHA 203(k) loans, which help buyers of older residences finance both the home purchase and repairs with one mortgage.

An FHA 203(k) loan can be a 15- or 30-year fixed-rate or adjustable-rate mortgage.

Some homeowners take out an additional home improvement loan when the need arises.

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FHA vs Conventional Loans

Is an FHA loan right for you? If your credit score is between 500 and 620, an FHA home loan could be your only option. But if your credit score is 620 or above, you might look into a conventional loan with a low down payment.

You can also buy more house with a conventional conforming loan than with an FHA loan. Conforming loan limits in 2023 are $726,200 for a one-unit property and $1,089,300 in high-cost areas.

Borrowers who put less than 20% down on a conventional loan may have to pay private mortgage insurance (PMI) until they reach 20% loan-to-value. But borrowers with at least very good credit scores may be able to avoid PMI by using a piggyback mortgage; others, by opting for lender-paid mortgage insurance.

One perk of an FHA loan is that it’s an assumable mortgage. That can be a draw to a buyer in a market with rising rates.

The Takeaway

An FHA home loan can secure housing when it otherwise could be out of reach, and FHA loans are available for refinancing and special purposes. But mortgage insurance often endures for the life of an FHA loan. The Biden-Harris Administration recently reduced monthly MIP for new homebuyers to help offset higher interest rates.

Some mortgage hunters might be surprised to learn that they qualify for a conventional purchase loan with finite mortgage insurance instead. And some FHA loan holders who have gained equity may want to convert to a conventional loan through mortgage refinancing.

SoFi offers conventional fixed-rate mortgages with competitive interest rates and cancellable PMI, as well as refinancing. Check out SoFi’s low rate home mortgages.

Qualifying first-time homebuyers can put as little as 3% down, and others, 5%.

View your rate today.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Source: sofi.com

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Hello! Today, I have a great debt payoff story from Heather O’Donnell of HappyHumbleHome.com. Enjoy!

These days, I’m a frugal living blogger at Happy Humble Home and I provide money saving advice and encouragement to others.

But there was a point in my life, not that long ago, when I thought I would be in debt forever.

When my husband and I got married in August of 2015, we had $105,000 of debt. Since then, we have worked very hard towards our goal becoming debt free and we have crushed $95,000 of our debt.

Along the way, we’ve used 2 different debt payoff strategies and we’ve learned 3 essential habits that have helped us be successful along the way. In this post, I’m going to give you an inside look at how I overcame my giant mountain of debt because I know without a doubt that if I can do this, you absolutely can too.

More debt payoff stories:

I brought most of the debt into my marriage

My husband was debt-free except for his car payment. I had a giant student loan and a car payment of my own. Here’s a breakdown of exactly what our debt looked like:

  • Student Loan – $68,000
  • My Car Loan – $20,000
  • His Car Loan – $17,000

If you’re wondering about those numbers, let me give you a quick backstory.

My giant student loan was consolidated from my undergraduate and masters degrees. I went to school to be a elementary school teacher and was working as a kindergarten teacher in an inner city when we got married. Obviously, this was not a very high paying career choice.

It was just pure bad luck that my husband and I had to buy cars at the same time.

A few months before our wedding, his old car was starting to have problems and it would have been expensive to fix. We decided together that instead of fixing his old car, it would make more sense to trade it in and get a new one. So, he did.

We expected the little Honda Civic that I was driving at the time to last us at least another 5 years and we didn’t think his one car payment would be that bad.

But just a few weeks after my husband bought his new car, my car was totaled in a hit and run accident. Thankfully, I wasn’t injured. On the other hand, my poor little car was destroyed.

Clearly, I was going to need a new one. And of course, I could have bought something used and affordable. But instead I did a rushed month of research and decided to invest in a new car that would last us 10 years, barring another horrible accident.

So, that’s how we ended up with 2 car payments at the same time on top of my student loan.

We paid for our wedding in full with cash that we had saved up during our 18 month engagement. But this also meant that we were only paying the minimums on our debt during this time.

It was right after we were married that we decided to get serious about paying off our debt.

Emotionally, it was hard to be the one to bringing so much debt into my marriage. I felt really guilty about it and it took several long conversations with my husband before I was ready to tackle or debt together.

We started by learning everything we could about debt payoff strategies.

We decided that because we were already highly motivated, we should use the debt avalanche and focus on paying off my student loan first since it had a much higher interest rate.

For the next 18 months we devoted every spare dollar that we could to paying my student loan. We paid off $38,000 of the $68,000 total during that time.

The debt avalanche was serving us well. We’d paid off more than half of our biggest and highest interest rate debt. But our life situation was changing. I was pregnant and planning to leave my job to stay home with our baby. We knew this would drastically decrease our income and affect our debt payoff.

So, we decided to reevaluate our strategy.

After looking at our debts, we decided the best thing for us would be to eliminate our highest monthly payment. That would free up more money each month and would make life easier when I wasn’t working.

My husband’s car loan was our smallest debt, with our smallest interest rate, but it was our highest monthly payment at $505.  

We set our sights on that small car loan and started devoting all the extra money that had been going to my student loan each month to the car loan instead.

We had his car paid off in 6 months.

This put a lot more breathing room in our monthly budget.

Then, we turned our attention to my car payment. The minimum monthly payment for my car was only $297, but it was a much smaller total amount than my student loan and we wanted to remove that monthly payment too.

We put everything we could toward paying off my car, including our 2017 tax return, and we had it paid off 7 months later.

By this time, our son was here and I had left my job. Our income was much less than when we were both working and our expenses were a little higher since we had another person in our family.

So, our debt payoff slowed.

There were several months that we could only pay the minimum monthly payment towards the student loan.

Whenever we had a little extra, we would pay more.

Even though our progress had slowed, our motivation was still high. We had built so much momentum when we were paying off our debts quickly and that carried us through those harder months.

Since I left my job in August of 2017, we have paid off $21,000 of my student loan on one income.

So at the time that I’m writing this we still have about $10,000 of debt left. I have this new, life changing ability to see the light at the end of the tunnel. I know we will be debt-free soon, and once we are, we’re never going back.

I want to share with you 3 essential habits that we used to pay off our $95,000 of debt so far.

These strategies worked for me even as someone who was horrible with money in the beginning. And they’ve kept me motivated through the hard times when I felt like giving up. I know these strategies can work for you too.

1. Monthly Debt Check-In

Every month during the last weekend of the month, my husband and I spend an hour planning out our budget for the month ahead and checking in on our debt payoff progress.

We talk about how much debt we’ve paid off and how much further we have left to go.

Sometimes we play with an online debt calculator on Unbury.us. The calculator tells us when our debt will be paid off based on how much extra we can pay each month. For example, if we pay an extra $600 a month, we’ll have our debt paid off my February 2020. It just gives us a rough idea of how close we’re getting.

Talking about it is powerful gets us excited and motivates us to continue.

2. Cutting Expenses for Extra Debt Payments

We did everything we could think of to lowering our expenses so we would have more money to devote to paying off our debts. This wasn’t fun to think about at first, but it was fun to see all that extra money going toward paying off debt.

Here are some of the expenses we cut to free up money for extra debt payments.

Food

We completely stopped going out to eat at restaurants. During the 3.5 years that we’ve been married and working on our debt, my husband and I have only been in a restaurant on our anniversary or birthdays.

We also stopped getting take-out food on the busy (or lazy) nights that we didn’t feel like cooking. Instead we had some supplies on hand for super simples meals that we both liked and that would be easy to prepare when we didn’t want to cook. These were mostly things like tuna, cartons of soup, or frozen chicken fried rice.

I made an effort to meal plan and once I learned a system that worked for me, I worked on stretching the same ingredients out for several different dinners in a week. For example, shredded beef would work for beef and broccoli, beef tacos, and stew.

Then, I started getting serious about saving money on groceries. I started looking for sales, comparing prices, using some coupons, and shopping with a grocery budget. I was able to lower our grocery costs by $40 a week with just a little bit of work and thinking ahead.

Household Costs

After we got our food costs under control, we focused our attention on our household costs.

We seriously cut down on our electric bill just by unplugging things and intentionally turning off what we weren’t using.

We negotiated our cell phone bill and saved $15 a month.

We made an effort to use a little less of everything – less paper towels, less detergent, less shampoo.

We’ve even tried to do some simple home repairs ourselves without calling (and paying) a professional. My husband was able to fix the ice maker in our freezer, replace our doorbell, and even do a simple repair on our toilet.

It was easier than I thought it would be.

I expected cutting our expenses to be a grueling process but it was so much easier than I ever expected. We would just try something, and if it worked we’d get really excited about the money we saved.

My success with cutting our expenses is one of the main reasons I wanted to start my blog, Happy Humble Home. I was excited to share simple, actionable ideas that other people could use in their own lives, with their own families, to save money.

3. Keeping the Future Front of Mind

The biggest change that helped me while paying off debt was actually a mindset shift.

I stopped thinking about what I wanted right now, and instead started focusing on what I want in the long run.

I knew that I didn’t want to still be paying off my student loan when my kids were in college. And during the times that I was struggling, that’s what I would remind myself.

And my husband and I are always talking about how much more money we will have once we don’t have to make any debt payments. We’ll actually be able to save money for things that we really want, like remodeling our bathrooms.

This isn’t an easy mindset shift to make.

There were so many times that I wanted the instant gratification that came from take-out food or going out with friends or buying a cute new outfit.

I had to keep reminding myself that 5 years from now I wouldn’t remember that meal, or event, or outfit. But if I made the right choices, in 5 years I could be debt free. And that would have a profound impact on my family forever.

With practice, those hard choices became easier to make.

And now that I’m so close to being debt-free, it’s very easy to turn down temptation.

$93,000 in 3.5 Years

It’s a little scary to put all my real life numbers out there into the world. But It’s pretty amazing to take a step back and think about how far I’ve come. And It’s even more amazing to think about how close I am to the finish line.

My husband and I expect to be 100% debt free by the end of 2019. And once we are, we are never going back. Also, there will be a party.

In the meantime, I’m going to keep sharing my money saving tips and debt insights over on my blog, Happy Humble Home. I’m doing my best to empower everyone I can reach to fix their financial situation, just like I have. I’d be honored to be a part of your financial journey. You can join me here to get access to all of my best money saving tips and tools (including a printable debt payoff tracker!)

If your debt feels overwhelming like mine once did, I want you to know that this is not impossible. With a little intentionality, some smart choices, and healthy money habits you can pay off your debt and change your future. I know that if I can do this, you can too.

Do you have debt? What are you doing to pay off your debt?

Related Posts

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Source: makingsenseofcents.com

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Yesterday I shared the most important money tip: to gain wealth, you must spend less than you earn. Get Rich Slowly has covered many ways to reduce the spending side of the equation. But how can a person increase the earning side?

Consider an entrepreneurial endeavor. Start a small business based around one of your hobbies. It’s not difficult to earn a couple thousand dollars each year doing something you love in your free time. The key is to not let the hobby-as-business overwhelm you. Keep it fun. Don’t let it become a chore.

With that in mind, here are some real-life examples of hobbies I’ve seen people turn into side-businesses. I know people who:

  • Repair computers. Are you a tech geek? Start a business providing computer advice for family and friends. Help people set up new computers, add peripherals, remove viruses and spyware, and maintain home networks. Consider offering hour-long training sessions in programs you know well.
  • Make photographs. Sell your photos! Take a community college class to enhance your skills. Enter photo contests. Display your photos at the county fair. If you make a good image, you can sell it repeatedly for $50, $100, $200. I recently met a woman who now makes her living by selling images through iStockPhoto.
  • Garden. If you have a huge garden, consider selling produce or flowers. In rural areas, you can run a small road-side stand on weekends selling fresh roses, blueberries, tomatoes, whatever. If you live in the city, let your neighbors know you have fresh produce for sale (or trade).
  • Make music. Can you play an instrument? Hire yourself out to play at weddings or dinner parties. Start a small group. Play at holiday events (especially Christmas). Get creative: play at street fairs and farmers markets.
  • Write. Do you write well? Offer your services to friends and family. Edit important letters. Proof papers. Compose pieces on commission. Start a weblog about one of your passions!
  • Build things. If you have a shop and some skills, teach yourself to build tables or bookshelves or cabinets or chairs. Sell these items on craigslist or to people you know.
  • Knit. If you’ve been bit by the knitting bug, put that yarn habit to work. Create simple, beautiful hats and scarves. Take commissioned projects. My wife is learning to knit adorable little stuffed animals; she could sell them for $20 a pop.
  • Repair cars. Offer to perform simple car repairs for friends and family. It’s a win-win situation: you make some extra cash, and they save money. (Just be sure not to get in over your head.)
  • Cook. Do people rave about your food? Offer to cater events. Provide food for a picnic, for a cocktail party, for a sit-down dinner. Sell cookies and cakes.
  • Haul things. If you have a van or a large pickup, offer your services for transporting couches and dressers, etc. Hire yourself out to haul barkdust and mulch. Help people move. In March, I met a fellow who advertises on craigslist. Several times a week, as he drives home from work, he hauls something from one part of the city to another for $25. It takes little him little extra time and generates a couple hundred dollars a month. It’s his “mad money”.

The possibilities are endless. The key is to examine your passions and talents to find something for which people would pay you. You won’t get rich quickly through these side businesses (though there’s nothing that says you can’t), but you will boost the earning side of your wealth accumulation.

Everyone has something that they can do well. Discover what it is you can do, and then market your abilities. The best part is: you’ll be making money while simultaneously improving your skills so that you can make even more money in the future!

Addendum: Via e-mail, Melissa A. reminded me of another great use for hobbies: “Hobbies are a good way to make gifts for people cheaper than it costs to buy them too.” This helps with the “spend less” side of the basic equation. My wife has given knitted items as gifts. I sometimes give photographs. One of my favorite birthday gifts ever was a batch of chocolate chip cookies.

Source: getrichslowly.org

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Table of Contents

FAQ

What is the VA Loan Limit?

2021 VA Home Loan Limit: $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $548,250 (Call 877-432-5626 for details).

How to Apply for a VA Home Loan?

This is a quick look at how to apply for a VA home loan in Mono county. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Mono County. If you have any questions, you can call us at VA HLC and we’ll help you get started.

  1. Get your Certificate of Eligibility (COE)
    • Give us a call at (877) 432-5626 and we’ll get your COE for you.
  2. Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
  3. Get pre-approved, to get pre-approved for a loan, you’ll need:
    • Previous two years of W2s
    • Most recent 30 days paystubs or LES (active duty)
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
  4. Find a home
    • We can help you check whether the home is in one of the Mono County flood zones
  5. Get the necessary inspections
    • Termite inspection: required
    • Well or septic inspections needed, if applicable
  6. Get the home appraised
    • We can help you find a VA-Certified appraiser in Mono County and schedule the process
    • Construction loan note: Construction permit/appraisal info
      1. Building permit
      2. Elevation certificate
  7. Lock in your interest rates
    • Pro tip: Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
  8. Close the deal and get packing!
    • You’re ready to go.

What is the Median Home Price?

As of March 31, 2021, the median home value for Mono County is $494,554. In addition, the median household income for residents of the county is $62,260, which is higher than the national average.

How much are the VA Appraisal Fees?

  • Single-Family: $600.
  • Individual Condo: $600.
  • Manufactured Homes: $600.
  • 2-4 Unit Multi-Family: $850.
  • Appraisal Turnaround Times: 7 days.

Do I need Flood Insurance?

  • The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
  • In Mono County, there are many flood plains, especially along the rivers. Your agent can help you to check whether a property will require flood insurance.

How do I learn about Property Taxes?

  • For questions about property tax, you can get in touch with the Mono County Assessor, Barry Beck. His office is reachable at 25 Bryant Street, 2nd Floor, Bridgeport CA 93517 and by calling (760) 932-5510.
  • Veterans, owner-occupiers, and senior citizens may be eligible for property tax relief. You can find out whether you qualify through the county assessor. In addition, the Assessor’s Office can do re-appraisals to determine property values and flood risks.

What is the Population?

  • The county’s population of 14,444 is 65% White, 26% Hispanic, and 3% Two or more races.
  • Most county residents are between 18 and 65 years old, with 17% under 18 years old and 16% older than 65.
  • In total, the county has about 4,847 households, with an average of two people per household.

What are the major cities?

There are no incorporated cities in Mono county, but Mammoth Lakes is a town with a population of over 8,000. The county seat, Bridgeport, has just under 600 residents. Other notable communities include Crowley Lake and Walker.

About Mono County

Located in the Eastern Sierra region, Mono County is known for its natural beauty. The county becomes a winter wonderland each year and is home to the famous Mammoth Mountain ski slopes. It also has some of the best fall foliage in the state. In spring and summer, residents can explore the 300 miles of trails that make up the Mammoth Lakes Trail System.

The county gets its name from Mono Lake, which has helped make the county a top tourist destination. It is one of the oldest in the Western Hemisphere and is known for its strange and beautiful limestone rock formations, known as Tufas.

In addition to its natural beauty, Mono County is also known for its excellent fishing. Fishing is such a big deal in the area where residents celebrate the fishing season’s opening, “Fishmas,” on April 25. There are also dozens of derbies and fishing events throughout the year where you can try your luck and catch the big one. Plus, there’s free fishing for everyone each Fourth of July.

Veteran Information

Mono county is currently home to 673 veterans.

  • County Veteran Assistance Information
    • Mono County Veteran Services Office – 1290 Tavern Road, Mammoth Lakes, CA 93546.

VA Home Loan Information

  • For more information about VA Home Loans and how to apply, click here.
  • If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.  
  • VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.

VA Approved Condos

There are currently no VA-approved condos available in Mono County. However, it is still possible to get a condo through the approval process all you need to do is call us at (877) 432-5626 and we will help you through the condo approval process.

Source: vahomeloancenters.org

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If you draw a paycheck, you’re due an extra $160 in January and February thanks to the Temporary Payroll Tax Cut Continuation Act of 2011.

What’re you gonna do with your windfall? Maybe not much. It’s pretty easy to miss $20 more in salary, especially if fixed expenses (groceries, insurance, child care, gasoline) keep going up.

Note: This is not a political column. I repeat: This is not a political column. I really don’t care what you think about the payroll tax cut. Please keep all your #$@!# dumb-o-crat policies or #$@!# con-man-servative hatefulness comments until a later date. Like, um, never. Get Rich Slowly is a personal finance site, not a flame-throwing political forum. Thank you for not foaming.

Technically you have two choices: Save it or spend it. I’d like to suggest a third: Save it or spend it intentionally.

You could go out to lunch a couple of times each week. You could treat yourself to $20 worth of cupcakes or ceramic clowns from the dollar store. Or you could convince yourself that each double sawbuck represents an opportunity to improve your life.

Which it does — if you look at it the right way.

If someone offered you $160 in cash, you’d probably grab it. (And if you didn’t, can I have yours?) But to some people, an “extra” $20 a week seems penny-ante.

Thanks to rampant ATM use, $20 bills have become the coin of the realm. I believe this has devalued them in the popular imagining — and there’s no denying that $20 doesn’t go very far these days.

True and Cumulative Costs

In particular, it doesn’t go very far if we fail to pay attention to spending. We grab a soda and some chips when we go in to pay for gas. We add a magazine and a few packs of gum at the grocery checkout counter. We always get popcorn at the movies because, well, we just do, that’s all.

It’s only $3, or $5, or $7. Besides, we deserve it.

That’s how some people get into trouble in the first place: By neglecting to frame expenses in terms of their true and cumulative costs. Dropping a few hundred dollars on a spur-of-the-moment weekend getaway is great fun at the time, but you may regret it if you can’t pay the balance in full.

The money you spent (and continue to spend, in the form of credit card interest) also is cash that can no longer be used in a smarter way, such as retirement or a pay-cash-for-a-car fund.

Let me be clear: I am not saying that you can never have any of the things you want. In fact, I am learning — slowly! — to spend a little money on myself. So if you’re in a position to drop that extra $20 per week on chai tea or sheet music, by all means drop it.

And if not? Make those temporary twenties work damned hard for you — and incidentally, their job might be to pay for something fun, such as frugal entertainment.

Pay It Down, or Pay It Forward

How can you put that money to work? Use it for the following:

  • Emergency fund. Not to belabor the obvious, but that $160 is a nice fund-plumper. And if you’re brand new at this, the sum is nearly one-third of the $500 that Liz Weston says you need in the bank.
  • Retirement. Put the money into your Roth IRA or whatever other fund you have. (Don’t have one? Let this be the seed money.)
  • College fund. Add an extra $160 to Junior’s post-secondary plan.
  • Pay down debt. One hundred and sixty dollars = a nice debt snowflake.

Shopping, if you must:

  • Nonperishables. Flour, sugar, dry beans, tuna, rice, canned goods, pasta, your favorite cereals — and give yourself bonus points for buying on sale with coupons. Your grocery bill will drop a bit for the next month or two as you eat your way through the storehouse. And if something unexpected happens (illness, car repairs, job loss), you’ll congratulate yourself on having a well-stocked pantry.
  • Pet supplies. When you see a screamin’ deal on food or litter at PetSmart or PETCO, stock up. Improve the sale price by paying with plastic scrip from a discounted gift card site.
  • Cut-rate couture. Watch for end-of-season sales on wardrobe basics you know to be durable and comfortable. You might not have to buy work slacks for a year or two. Or browse a thrift store or consignment shop — again, looking for clothing that’s well-made and flattering. What fun to see how far a $20 bill will go, especially on 50-Cent Day. (I’m referring to the price tag, not the rap star.)
  • Shoes. Use price-comparison and cash-back sites as noted above to find sale prices on your favorite make and model. I recently ordered three pairs of my favorite old-lady comforts for about $153 (minus the nearly $11 cash-back rebate).
  • Socks and undies. Bor-ing? You betcha. But elastic isn’t forever and your socks will eventually develop holes. When crew socks and tighty-whities go on sale, buy half a dozen or more of each.

For the health of it:

  • New glasses/contacts. Still squinting through those three-year-old specs? Discount eyewear emporia regularly offer coupons in newspapers and Valpak envelopes, and through online coupon sites like Savings.com and Retail Me Not. Oh, and stock up on contact lens solution when it goes on sale.
  • Vitamins. Aim for a three- or six-month stash of your favorite supplements. Use a price comparison website like Price Grabber or Cheap Uncle to find the best deals, and see if the lowest-priced merchant can be accessed through a cash-back shopping site like Mr. Rebates, Extrabux or FatWallet.
  • OTC meds. Restock your medicine cabinet with analgesics, bandages, antibacterial ointments, allergy meds and the like. You may be able to get these free or nearly so by combing coupons and rebates.
  • Dental work. Don’t have dental insurance? Me neither. But I regularly see social commerce vouchers and Valpak coupons for X-rays and cleanings. They cost $30 or less. A professional cleaning and a big-picture look at incipient problems may even save your life.

That’s entertainment:

  • Discounted movie tickets. Warehouse clubs sell them. However, you might get a much better deal through — yep — a discounted gift card site.
  • Annual pass. Museums, zoos, botanical gardens, opera, the orchestra — whatever floats your boat.
  • The Entertainment Book. It’s full of BOGOs for city attractions from art to boat tours. Buy it through a cash-back site for a rebate of up to 35% plus free shipping.
  • Condoms. Go ahead and snicker. But not having protection can be pretty damned expensive in the long run. I know a couple whose second child is on planet Earth because “we were out of birth control and decided to take a chance.” No, I couldn’t believe it, either.

Thinking ahead:

  • Warehouse club membership. Even studio dwellers might be able to buy in bulk if they’re creative about storage.
  • Go green. Replace some incandescent bulbs with LED or compact fluorescent bulbs and trim your electric bill. Faucet aerators and low-flow showerheads reduce both energy and water/sewer bills. If the commode in your abode is really old, consider a water-saving toilet.
  • Car care. Watch for sales on fluids (antifreeze, windshield washer, a case of motor oil, et al.), filters and replacement wiper blades. If your tires have receding treadlines watch for sales on those, too. (Don’t forget Craigslist. A friend bought four high-quality, nearly new tires for $100.)

Ant or Grasshopper?

The grasshopper generally has a swell summer: long days at the beach, trips to amusement parks, ice cream for breakfast. Meanwhile, the ant is weeding the garden, clipping coupons and hanging all his laundry to dry outside.

Once the temperature drops, the grasshopper is likely to regret his profligacy. The ant, meanwhile, has a storeroom full of pinto beans and tube socks. All the windows have been caulked, too.

Of course, it’s your money and therefore your decision. But try thinking of your $160 in ways like these:

  • One night at a nice hotel, or an extra chunk of fundage into your Roth. (Oh, compound interest, I’ve missed you so! Let’s never fight again!)
  • A couple of months’ worth of cable vs. new glasses. (What good is TV anyway if you can’t see it?)
  • Dinner for two at a nice restaurant, or some depth to your pantry.

One more suggestion: Split the difference. Get yourself $80 worth of truffles and apps and $80 worth of something less than sexy but ultimately beneficial, such as cat litter or dental X-rays. Even $40 will pay for a fair amount of decadence, especially if you use a coupon.

Source: getrichslowly.org

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Buying a home is one of the largest purchases a person will ever make. I can’t think of anything that would be more expensive.

Since buying a home is such a large part of a person’s life, no one wants to make a mistake. It would be a costly mistake if you did make one.

Recently, I received a reader request for a new post about buying a home. The reader asked:

I would love to see a post on the best way to save up to buy a house, i.e. what is a good percentage to put for the down payment, what other costs should be saved for such as homeowners insurance, inspection fees, etc.

I think this is a great question. I am not a home buying expert, but I have bought a home in the past and we are in the very, very beginning stages of buying our next.

With our first home, we got a great deal and bought a house that was much lower than what the bank approved us for. We researched like crazy and thought about all of the different little expenses that would come up when you own a home so that we would not be surprised. There were still a few surprises, but for the most part nothing was too shocking.

However, this is not how many people buy a home. Many people buy a home by only looking at the sticker price, and not really thinking about anything else. There are many expenses that go along with buying a home and all of these little expenses can really inflate the price.

Related: How Much Money Should I Save Each Month? 

Below are questions you may want to ask yourself before deciding on a home:

What expenses come with a home?

There are many expenses that come with buying a home. All of the different home expenses should be budgeted into what you can actually afford. I always think it’s best to be as prepared as possible.

Possible home expenses include:

The actual home. Okay, this one is obvious. This will be the price you actually pay for a home. You need to think about your interest rate and closing costs in this area too. Your interest rate can vary and even just a difference of one percent could mean a hundred dollar or more difference each month.

Property taxes. This can vary widely from city to city and state to state. It’s always best to look at the property taxes before bidding on a home. One house that is priced in one city might have property taxes of $2,400 a year ($200 a month), and a very similar house with the exact same price in another city (and yes, it could just be a mile down the road) might have property taxes of $4,800 a year ($400 a month). That difference in property taxes might be what puts you over your budget.

Home insurance. For this, you want to think about all parts of home insurance. Will your home need any added insurance? Such as for earthquakes, flooding, or hurricanes? Our home insurance is fairly cheap, at around $700 per year. I know someone who pays $2,800 for their annual home insurance though. Prices can vary greatly depending on where you live and how big your home is.

Bills. Different homes will have varying amounts when it comes to bills. For example, older homes tend to have higher utility bills because of inefficiencies in the home (air flow throw cracks in windows and doors, old furnace, etc.). For example, one home that cost $300,000 might have a monthly electric bill of $75 per month. Another home with that exact same price might have a monthly electric bill of $500 per month. Some of the bills you might expect (related to your home) include electric, gas, trash, sewer, water, cable, and more.

Inspection fee. This is usually a one-time fee. Before you buy a home, you should ALWAYS get a home inspection. Don’t skimp either. I recently saw someone on Facebook who was looking for a home inspector and she said she just wanted the cheapest thing possible and she didn’t care what the inspector checked. This is a HUGE mistake. I know someone who skipped a home inspection and a week into moving in, the bathroom upstairs flooded and the floor caved in. This was a ton of damage, and it turned out the problem had been building up for quite a long time. This means a home inspector most likely would have caught this. Different areas you might want to have checked include: the foundation; radon (don’t skip this. We almost did and our realtor advised us not to. Our home actually failed the radon test and we negotiated to have the radon equipment included in the sale contract); mold; termites; plumbing; electrical system; and more.

Furniture and appliances. I know someone who recently bought a home but was complaining that it was completely empty. They said they forgot to budget in furnishing the home, which turned out to be more expensive than they thought. So instead, they had boxes for end tables and only a bed in their new home. Furniture and appliances is an area you should not forget about unless you truly do not care. There are ways for you to save money (such as shopping on Craigslist), but it can still all add up very quickly.

House repairs and maintenance. Don’t forget about this! Home maintenance and repairs can include a lot. This includes:

  • Yard cleanup such as collecting leaves and mowing the lawn;
  • Plumbing such as replacing new pipes, clogs in drains, and so on.
  • Paint. Both interior and exterior.
  • Electrical. What if a squirrel chewed through your wiring?
  • Windows. What if a window broke?
  • HOA. I wasn’t sure where to put this but I think this category is best. Before you buy a place, you should figure out if you want to belong to a homeowners association or not. Their fees can add up quickly.
  • The list goes on and on…

Related: How To Save For A House

How much should I budget for a new home?

This is a hard question to answer.

Whatever you budget, you should always keep in mind the total cost of a home. There are many mortgage calculators and mortgage affordability calculators out there you can Google search for that will help you determine a budget.

As you can see above, there are many expenses that go into the total cost of owning a home.

It can be hard to decide on a budget for a home and to actually answer the question “How much can I borrow?”

It’s really just a realistic number that you feel comfortable with. Some people take out a loan that is around 25% to 30% of their after-tax take home income.

For me though, I like to stay significantly lower than that though. I would rather have my mortgage and home related expenses to be somewhere around 10% to 15% of my monthly after-tax take home pay. This is because I am a freelancer, so my income is not stable. I also live in a low cost of living area where housing is cheap, so I could never really imagine paying a crazy amount for a home when I am used to cheap home pricing.

Whatever you do, you should always have a budget in mind before you start home shopping. Also, try to get pre-approved before you go shopping for a home as well because you never know if you will even get approved.

One last note for this section: Your budget does not have to be the same budget that the bank gave you. Banks are notorious for lending out more than people can realistically afford. This means you should take the bank’s budget as a guide, but you will probably be better off if your budget is lower than theirs.

I highly recommend that you check out Personal Capital if you are interested in gaining control of your financial situation and buying a house. Personal Capital is very similar to Mint.com, but 100 times better. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation. You can connect accounts such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more, and it is FREE.

How much should I put down for a down payment on a house?

This is another tough question to answer, as there is not a single solution.

For us, I always thought our next home would be paid for completely in cash (many years down the line), but now it just seems like there are many positives in not rushing this process (there are both positives and negatives in not paying a home off early).

In some cases, you may be able to put down just 2.5% on your home, whereas other times you are asked to put down 20% or 30%.

How much you put down on your home really depends on if your goal is to pay it off early or not, and how much you can truly afford.

If you don’t care about paying off your home early, then putting 50% down may not make much sense if there are better investments out there and you don’t feel comfortable putting all of your money down. If you want to pay off your home in a “normal” 30 year rate, then putting down just the minimum (without having to pay PMI – see below) that your bank allows you might be best.

I will say that if you put down less than 20%, you will most likely have to pay private mortgage insurance (PMI), which can be a couple hundred dollars tacked onto your mortgage each month. This might be an expense that makes a home no longer affordable.

However, if you want to pay speed up your home payoff plan, then you might decide to put down as much as you realistically can afford in order to jump on your home payoff goal.

How much do you think a person should save up for a house?

Are there any other expenses I forgot about?

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Source: makingsenseofcents.com

Apache is functioning normally

If you’ve ever wanted to see the ugly underbelly of blogging, today’s your lucky day. Because there’s nothing pretty about moving. It’s messy, it’s dirty, it’s chaotic. And we’re in the thick of the storm so I’m not going to sugar coat it for ya.

Our move is in fact, just one week – yes I said it – one week away! Color me panicked. After living in the same apartment for nearly four years, getting our place back into rentable shape is more than a little daunting. Because it’s all about the renter’s holy grail – getting your security deposit back, am I right? As a reminder, here’s what things looked like when the loft was at its peak.

Needless to say, it’s devolved a bit.

We’re slowly but surely dismantling all the work I put into making this place feel like home. Now it’s my job to make it look like a place a new tenant will love. While it may feel like you’re powerless when it comes to the discretion of a landlord, there are a few things you can do to put your best foot forward and give yourself the best chance of having your deposit returned.

One thing we needed to do is patch some walls – I’m a sucker for picture rail shelves, what can I say – but having paint brushes, drop cloths and tools on hand is certainly not practical in apartment living. Neither is taking the time to fill holes, sand, prime & paint when I’m frantically packing  boxes with an 11-month old on my hip.

Hence TaskRabbit. If by some miracle you’re still unfamiliar with this awesome service, in short TaskRabbit is an app that connects you with people ready and willing to do the things you don’t have the time, know-how or brawn to complete on your own. Living in the city, TaskRabbit has come to my rescue more than once and this case was no exception. My Tasker, Logan was a dream come true. He showed up promptly, every tool necessary in hand and completed in two hours what would have taken me a whole day!

chloe was an excellent painter’s assistant 

Having that repair work crossed off my list is such a relief. It leaves me free to focus on the purging I’m attempting to do right now – because why pack what you don’t want, right? – and all the sorting and organizing that needs to happen too. If time gets really short, I just might call Logan back to help me pack boxes!

There are a few other things to do if you want to have the best chance to get your security deposit back – and they’re all things you can rely on the expertise of an experienced Tasker to help you do in half the time.

The obvious one is clean. You want to check your lease to see if a nonrefundable cleaning deposit is already built in, but if it isn’t, go crazy. Deep clean those bathrooms, cupboards, drawers and baseboards. All the details you might ignore in day-to-day life – this is where it’s worthwhile to clean them.

Along with patching walls, look for any other minor repairs you might want to make. Perhaps you need to touch up your walls, replace some chipped trim or fix a leaky faucet. Any wear and tear you can spruce up will increase your chances of getting your hard-earned money back.

If you have a small move you can even have TaskRabbit help you do that! Maybe you can convince your friends to schlep boxes and all you need is help with some heavy lifting.

As an added bonus, TaskRabbit is offering you, my dear Apartment 34 readers, an exclusive discount on their services! Simply enter the code APT34 to receive $20 off same-day tasks – because you never know when you’re going to need last second help. (this offer expires 3/31)

I wouldn’t be surprised if I call in TaskRabbit reinforcements one (or two!) more times before moving day.

image 1, 2 by aubrie pick

This post is in partnership with TaskRabbit. All thoughts and opinions are 100% my own. Thanks for supporting posts that have kept Apartment 34’s doors open.

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Source: apartment34.com