3 BORING A$$ Things Smart Homeowners Know About Their Home
These items mayyy seem boring to discuss and address, but you'll be glad you did.
When most people hear things like appreciation, value, escrow, insurance, HELOC as it relates to their home... you can almost see their eyes gloss over within about 73 seconds of conversation. However, when you address or know these items you can rest assured you know the comprehensive value and financial protections around your home. Let's get into it...
Numero 1: Appreciation & Value
You may have heard in the news, from your neighbors, or maybe you were in the game recently... but the housing market was INSANE over the last 24-36 months in the greater Kansas City metro area (nationally as well). Well, you probably know your home value gets assessed by the county every year and has likely seen growth in value aka- appreciation, by anywhere from 3-15% year over year!! This increase in value will mean more and more equity difference in your home as you pay down the principal & interest along the way (even better if you have no mortgage at all). You may surprised to know what your home is worth now. Give me a shout if you need a professionals estimate and we can run comps for you in about 2 mintues
The second thing to watch: Your Taxes & Insurance/Escrow Account
If you look around and see that you have a ton of new neighbors, there's a good chance your home value has changed. Could be worth a call to your lending instituon and have a conversation about your homeowners insurance and tax amount that you have allocated to your monthly payment. We have been seeing that towards the end of the year, after the county does it's reassessment... your estimated taxes/insurance escrow account runs out. Better to get ahead of it, rather than getting that "not-so-fun" letter in the mail that your account is empty. Furthermore, double-check with your homeowners insurance provider to ensure that your home has the proper protection and replacement value based on your new value. You would hate to only have 80% coverage of what your home has grown to be worth.
Lastly, BE AWARE of refinancing if you have a lower rate.
Many lenders businesses have slowed down due to rising interest rates in the recent market. They may call to offer you a shiney diamond but beware... you don't want to scrap your currently earned equity for a small cash payout and end up with a possibly much harder rate. Instead, ask about competitive terms for a HELOC and save your equity, and leverage your wealth long term. A trusted lender can and should advise you on all options, not only a cashout or buying best rates.
When in doubt, call your friendly- Relationship Agent (me!) and let's make sure this all makes sense to you and you are making smart financial decisions with your best and largest investment vehicle... your home! (ps- if you read this and can't remember your agents name... still call me! LOL)