Luxury Living Scottsdale Archives - Page 23 of 58 - Scottsdale Real Estate Team / Arizona Luxury Homes

5 Bathroom Renovation Mistakes to Avoid By Joe Szabo, Scottsdale Real Estate Team

April 2, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Read on to find out the five most common problems Devlin encounters — and how you can avoid them in your home.

1. Ignoring the bathroom fan

“Overlooking your bathroom fan is a huge mistake,” Devlin observes. “Sometimes people don’t install one or they don’t clean the one they have.” Without proper ventilation, he explains, humidity builds up on surfaces, and over time this moisture will cause paint and grout to deteriorate and mildew to form. Vacuuming the vent on a regular basis will help keep the fan clean. To determine if your fan is overdue for a cleaning, turn it on and hold a square of toilet paper up to the vent. If the paper stays up on its own when you let go, air is still flowing.

2. Lacking a clear plan before demolition

“Sometimes people think they can figure out what needs to be done as they go along,” says Devlin. “But you need a plan in place before you start any demolition.” Devlin believes you should have everything sketched out ahead of time, from your budget, to your materials, to the question of who will be doing which parts of the work. “Planning is everything,” he emphasizes.

3. Being unrealistic about a budget

“Don’t lie to yourself and try to do a $20,000 renovation when you have only $10,000 to work with,” Devlin urges. “You’ll only have to cut corners at the end of the project and you won’t be pleased with the results.” He suggests taking a careful look at your finances and getting a realistic number in your head. “Write the number down, put that amount in your bank account, and stick to it!”

4. Overlooking small mistakes

As your renovation goes along, Devlin advises, always fix mistakes — even the smallest ones — as soon as you notice them. “If one tile isn’t exactly flush or your paint strokes are going in all directions, fix it right away,” he stresses. “Don’t convince yourself you’ll learn to live with it. Those mistakes will always bother you, and if you can see them, then other people can see them too.”

5. Losing focus toward the end

Many people, Devlin reports, are excited about the renovation process at the beginning but lose steam as they approach the finish line. “They might take forever to frame out the room,” he says, “but by the end, they’re so eager to see the completed room, they start to rush.” The problem here is that the finish work is extremely important to the overall look of the space. “People should reverse the trend,” he muses. “Move at a steady pace at the beginning and slow down at the end to be sure everything is done correctly. Your patience will pay off!” Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

4 Ways to Snag an Extra Tax Break By Joe Szabo, Scottsdale Real Estate Team

March 31, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Many homeowners have a general understanding of the home-related tax breaks that apply to them. Here are a few lesser-known areas where you may qualify for a credit or deduction.

Refinancing points

Did you buy a house last year? Then you likely know that you can deduct the points you paid to get your mortgage — in one fell swoop. If you refinanced, however, you can’t do that. Rather, you have to deduct the points on the new loan over the life of the loan. For a 30-year mortgage, you can only deduct 1/30th of the points per year. If you had $3,000 in points, divide by 30 to deduct a paltry $100 in points each year. Every little bit helps, though.

Home energy credits

The tax credit that encouraged homeowners to save energy by installing insulation, storm windows, doors, roofs, and certain water heaters and qualified heating and air conditioning systems disappeared at the end of 2013. But there is one energy tax credit available for tax year 2014: the Residential Energy Efficient Property Credit. If you installed items like a solar hot water heater, geothermal heat pump, or wind turbine, your credit could be worth up to 30 percent of the total cost. This credit is slated to stick around until 2016.

Premiums for PMI

If you’ve been paying for private mortgage insurance (PMI) every month because you put down less than 20 percent on your home, you may be able to recoup some of that money by claiming the PMI deduction on your federal return. Keep in mind that the deduction, which is only for policies issued after 2006, expires with tax year 2014 unless Congress renews it. And the right to this deduction (which many homeowners don’t claim) disappears as your adjusted gross income rises from $100,000 to $109,000 (or $50,000 to $54,500 for those who use married filing separately status).

Simplified home office deduction

If you’re like most people who work at home, you probably don’t bother deducting your home office expenses because a) the rules are complex and b) you’re worried it will increase your chances of getting audited. But have you heard about the simplified calculation method allowed by the IRS? Probably not — although the deduction made its first appearance in 2013. Just multiply the square footage of the part of the home used for your home office (up to a maximum of 300 square feet) by $5 a square foot. The maximum deduction is $1,500. It’s an easy, time-saving calculation, and it certainly beats figuring out your own expenses and pro-rating them (although that’s still an option if you prefer). Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Slippery Business: Exotic Pets and Home Insurance By Joe Szabo, Scottsdale Real Estate Team

March 26, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Pet lovers no longer simply stick to sharing their homes with cats and dogs. More now opt for exotic or unusual pets such as snakes, monkeys, tigers, deer, bears and rare birds. Accurate numbers are tough to come by, because some states don’t require residents to report ownership of exotic or specialty animals. But the American Veterinary Medical Association, through its 2012 U.S. Pet Ownership and Demographics Sourcebook, estimates that 10.6 percent of households own one or more exotic or specialty animals. And according to National Geographic, more exotic animals live in peoples’ homes than in zoos. For example, by some estimates, as many as 7,000 tigers live in the U.S. as pets. Though exotic pets can make each day an adventure, people often forget to factor in the insurance complications associated with owning them. Your home insurance almost certainly excludes unusual pets. However, there are steps you can take to stay protected.

Why you need coverage

You may be wondering why it matters if your home insurance doesn’t cover your exotic pet — after all, you can control any damage the animal does to the home and just pay for repairs yourself. No problem, right? Wrong — there’s a very big potential problem. Standard home insurance, in addition to protecting the structure of your home (and your possessions) from specified perils such as fire, wind and theft, also provides liability coverage in case you’re responsible for an injury or property damage. If your exotic animal is excluded, you won’t have this coverage should your pet bite or maul a visitor. Not only could you be on the hook for the victim’s medical expenses, but they could file a lawsuit seeking lost income and payments for pain and suffering, among other claims. Even if you win the lawsuit, you’ll have to pay for your legal defense. The money flowing out of your bank account could add up quickly. The average dog bite claim in the U.S. results in a payout averaging $27,862, according to the Insurance Information Institute. Someone attacked by an exotic pet could suffer even more serious injuries. And exotic animals can present more of a risk than other pets because their behavior can change with the seasons or with life cycles in ways that humans don’t fully understand, according to the American Society for the Prevention of Cruelty to Animals (ASPCA). Even a docile exotic pet can pose a threat. The ASPCA reports that as many as 90 percent of snakes carry salmonella, and 25 percent of macaques (a type of monkey) have or have had the herpes B virus, which could be deadly to humans. Unusual pets can transmit a plethora of diseases including chlamydia, hepatitis A, rabies, monkey pox, tuberculosis and measles, to name a few. And if a visitor gets sick after coming into contact with your pet, you could face a serious lawsuit.

What’s an exotic pet owner to do?

You can see how dangerous it would be to go without the liability coverage normally provided by home insurance. Luckily, some companies sell exotic pet insurance that protects you if your animal causes injury or illness. How much it will cost depends on your pet and the potential risk involved in ownership of it. Some policies will be pricey. Your best option: Get quotes from a number of exotic pet insurance providers — the cost can vary greatly. Be sure you’re considering similar coverages and limits in each quote. One tip to lower premiums: Ask whether you can increase your deductible — the amount you pay out of pocket for a claim. Only do this, however, if you can come up with the deductible on demand. Although it can be expensive, exotic pet insurance is a crucial part of owning an unusual pet. A specialty pet in itself can be a large investment, of course. But you have to protect your finances from the threat of lawsuits arising from your animal. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Selling a Home: Your Legal Checklist By Joe Szabo, Scottsdale Real Estate Team

March 23, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you’re thinking it’s time to sell your home, there are a few legal issues to consider before posting that “For Sale” sign. Whether you are parting ways with your spouse, planning to upgrade or downsize, or selling out of financial necessity, you should protect yourself from pitfalls awaiting the unsavvy seller. Here are four steps you can take to avoid common issues that pop up during the residential home sale process.

Resolve debts, encumbrances and liens

If your property has incurred any sort of debt, encumbrance or lien, you will need to take care of this prior to settling with your buyer. This obstacle can arise in any number of ways, including through:

Federal, state or local tax liens
Civil court judgments
Child support or spousal support missed payments
General unpaid debts
Failure to pay homeowners association dues

Of course, the outstanding amount will vary greatly from homeowner to homeowner, but one thing is certain: The lienholder will get paid. If you are facing a major tax lien or civil judgment attached to your property, selling your home will not get you out of trouble, especially if you try to hide the debt or defraud the buyer. The lien will, without question, appear on a title search ordered by the buyer and will become a deduction from your sale proceeds on the day of closing.

Get joint tenants on the same page

The ownership structure of your property may impact your ability to sell, especially if you inherited the property with several family members as joint tenants. If this is your situation, your options for selling the property are limited. You can either gather consent from all owners or try to divide the property in your state’s court of equity, which is usually a lengthy, expensive and highly combative process. In other words, before you attempt to sell jointly owned property, you need to get everyone on the same page and agree on how to split the net proceeds after the sale. The same holds true if you and your spouse are going through a divorce and have mutually decided to sell the marital home. If the property was owned through joint tenancy or tenancy by the entirety, both owners will need to sign the transfer deed over to the new buyers and agree to split the proceeds accordingly. Trying to sell the house out from under your ex probably won’t work, and you could face serious fraud consequences for trying it.

Draft a home sale agreement, if needed

While other countries have set up laws granting property and ownership rights to unmarried domestic partners, the vast majority of U.S. jurisdictions have yet to catch on to this trend — much to the dismay of domestic partners seeking to sell their home or purchase property. One of the best ways to ensure the process goes smoothly is to encourage open communication and clearly set contract terms that determine the profit division after the sale, especially if one partner is not on the deed. Prior to engaging real estate professionals, sit down with your partner and go over the current financials of the property, including outstanding mortgage debt, asking price and your agreed-upon bottom line offer threshold. From there, discuss the ownership expectations of both parties: Is it 50/50? 40/60? 25/75? This conversation may feel awkward at first, but it is the best way to protect each party’s investment in the property, which includes payment toward the mortgage, improvements, sweat equity and upkeep. Once these issues are decided, have an experienced real estate attorney draft a home sale agreement that sets forth the allocation of proceeds upon sale, the responsibilities of each party with regard to debts or encumbrances, and any other terms agreed upon between you and your partner. With this agreement in place, you are both protected from the pitfalls of litigation in the event the relationship — or the deal — crashes and burns. Otherwise, the court will only be able to help the party named on the deed as the owner.

Gather important documents

Finally, as you prepare for the sale of your home, it helps to compile all the important documents related to the value of the property, such as:

Deed
Evidence of encumbrances, liens, judgments, etc.
Surveys
Appraisals
Documentation of major repairs, damage or improvements
Any agreements made between tenants or co-habiting partners
Comparable sales in the area (if available)
Any agreements made between you as the seller and your real estate agent (if applicable)
Copies of restrictive covenants imposed upon the community, as this information will be highly relevant to prospective buyers

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

4 Tips for Making Any Room Seem Larger By Joe Szabo, Scottsdale Real Estate Team

March 20, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Plenty of people live in tiny homes, small rooms, or just diminutive spaces. No matter what your reason for living in smaller quarters, you’ll undoubtedly have to make some compromises in your decorating. To live happily and efficiently in smaller square footage, you’ll want to get organized and make some adjustments to your lifestyle. By making the most of color, strategic furniture buying, space planning and interesting lighting, your place can feel wonderfully “you” — with all the space you need.

Expand your square footage to the outdoors

If you have large windows with beautiful views, add those colors to your room to unify the outside world with inside space and expand the look of your rooms. With the wonderful patterns and colors that outdoor fabrics offer, there is no reason to stop the “pretty party” at your interior.

Carrying coordinating materials outside for drapes, cushions and area rugs will only make your space look visually larger. On the interior, let as much natural light into a room as possible so it opens up the space and gives it character.

Edit mercilessly

Declutter your space. Try to dispose of everything you have not used for a year. Do not get attached to furniture. Get rid of any item that is not adding to the look of the room.

Create organized storage wherever possible via built-in benches and use multi-purpose and storage furniture pieces, such as ottomans, so items that are less frequently used can be stowed away.

When it comes to cabinets and bookcases, do not fill up every shelf in a room; leave some of them half empty and spacious for an airy and more dramatic look. Where functional, remove as many doors as possible or use pocket doors to increase the sense of space.

Keep it simple

Link adjacent spaces with a unifying wall color and floor material. Maintaining a monochromatic palette makes rooms look bigger. If you do need to change flooring materials, simply stay within the same color family — the fewer floor “breaks,” the better.

Light colors or neutrals are space expanders and provide a neutral background for furniture and artwork.

Using cool colors will make your walls appear to visually recede. Additionally, it is best to avoid unnecessary details, such as ruffles, in furniture and window treatments. Use simple paneled draperies or shades instead.

Make a statement

Installing an oversized mirror or a set of smaller mirrors will add extra light, sparkle and make a small room appear larger. Even if a room is small, adding oversized artwork on a small wall or a statement light fixture overhead can create drama while making the space appear larger than it is.

You may also consider adding a floor-to-ceiling and wall-to-wall bookcase — this trick will create an impressive focal point and visually expand space by pushing the walls and ceiling out. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

5.2 Million Renters Plan to Buy in the Next Year By Joe Szabo, Scottsdale Real Estate Team

March 17, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Jackie Bigness and her family are finally ready to buy a home. After years of renting, plus 8 months of living with her parents while they saved for a down payment, Bigness and her husband are house-hunting in earnest — and in the snow. “Because we have such an early start [to house-hunting season] here in Chicago, we’ve been trudging through the snow — and what’s out there in our price range is insulting,” Bigness says. She hopes the listings will improve as home-selling season ramps up. The Bignesses are at the front end of a wave of some 5.2 million renters who plan to buy homes in the next year, according to the Zillow Housing Confidence Index (ZHCI), which is sponsored by Zillow and developed by Pulsenomics LLC. That’s an almost 25-percent boost from the same time last year. Homeowners remain more confident overall than renters, but renter confidence is growing faster than homeowner confidence in 14 of the 20 metro areas surveyed. People with the most confidence about the housing market are in San Jose, Miami and San Francisco. Confidence rose the most since last year among respondents in Dallas, Detroit and St. Louis. “As home affordability continues to look great and rental affordability looks abysmal, many current renters clearly seem to be re-thinking their attitudes toward homeownership, and are expressing more confidence in the overall housing market as a result,” says Zillow Chief Economist Stan Humphries. Still, Humphries cautions, wanting to buy is not the same as being able to. “Saving a down payment, qualifying for a mortgage and finding an affordable home to buy all remain formidable challenges for many,” he says. The ZHCI polls homeowners and renters about housing market conditions, expectations for the future and their attitudes toward homeownership in general, across 20 large metro areas. You can read more about the results at https://www.zillow.com/research/housing-confidence-jan-2015-9097/. Survey respondents were most confident in these places: 1. San Jose, CA 2. Miami, FL 3. San Francisco, CA 4. Dallas, TX 5. Los Angeles, CA 6. San Diego, CA 7. Washington, DC 8. Denver, CO 9. Phoenix, AZ 10. Seattle, WA Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Tax Benefits of Homeownership By Joe Szabo, Scottsdale Real Estate Team

March 12, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Owning real estate can make tax season more complex, but many homeowners receive considerable benefits — especially if they sold a home or relocated for a job in the previous year. Here’s a look at three ways homeownership can pay off at tax time.

Mortgage interest

When you purchase a home, you will likely get a mortgage. Your monthly mortgage payment is made up of both principal (paying money to pay down the loan) and interest (what the lender charges for supplying the loan). As a way to incentivize homeownership, the federal government provides a tax benefit when it comes to the interest portion of your mortgage payment. A homeowner can write off, dollar for dollar, the interest portion of their mortgage payment. Say, for example, a homeowner’s annual salary is $100,000. Their mortgage payment is $1,200 per month, and the interest portion of that payment is $1,000. At the end of the year, they have a $12,000 tax write-off. In essence, their taxable income is reduced to $88,000.

Capital gains

Homeowners also get a tax break when they sell their home. If you purchase your home for $200,000 and sell it for $400,000, you have a $200,000 gain — that’s income. If you have an income by way of a job, a contract position or the sale of stock or mutual funds, you pay income tax on that gain. With homeownership, it’s different. If you are single and lived in the home for at least two of the past five years, you do not have to pay any income tax on that $200,000 gain — in fact, you don’t have to pay on gain up to $250,000. Married couples filing tax returns jointly and following the same owner occupancy guidelines are exempt up to $500,000. Where else can you generate income without paying taxes on it?

Tax credits for moving

If you purchase a home in one state and sell one in another, you should check with a CPA in both states. There may be benefits realized in one state but not the other, such as tax credits for moving expenses, if the move is a part of a job transfer. And, for the year you are between states, you will likely need to file a return in each state. It’s always smart to check with a CPA before a real estate transaction. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Mortgage Rate Update By Joe Szabo, Scottsdale Real Estate Team

March 10, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.73 percent, up 3 basis points from this time last week. The 30-year fixed mortgage rate rose Friday to 3.83 percent, where rates hovered through the weekend before dipping to the current rate on Tuesday.

“Rates remained flat for most of last week but jumped sharply after Friday’s exceptionally strong jobs report, before easing back down early this week,” said Erin Lantz, vice president of mortgages at Zillow. “We expect rates to hold steady this week due to little incoming data and the official start of the European Central Bank’s bond purchases.” Additionally, the 15-year fixed mortgage rate this morning was 2.92 percent, and for 5/1 ARMs, the rate was 2.89 percent. Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

February 2015 Scottsdale Arizona real estate market

March 9, 2015 Joe Szabo

Can you believe it’s already March? The Valley is swarming with snowbirds and sports fans and with all of the poor weather conditions around the country more and more people seem to be eyeing Scottsdale as a possible new home. Let’s take a look at how the Scottsdale real estate market faired in February. New listings are down 21.2% from January with a total of 985 new listings vs. 1,250 in January. The new listings in January were driven by homeowners waiting until after the holidays to list their home; it is typical for February numbers to be lower than January for this reason. New contracts and closed sales were both up in February by 13.5% and 16.4% respectively. The median sale is down slightly from $385,000 in January to $365,000 in February. February closed with some motivating numbers – Sellers on the fence are strongly encouraged to take advantage of the low inventory and high demand! During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

Scottsdale Detailed market report feb 2015

Considering a purchasing or selling a property in Scottsdale? Call Joe and Linda Szabo – The Scottsdale Real Estate Experts! We hope that you enjoy reading and analyzing the Scottsdale Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com. You can also visit https://scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results.

4 Simple Strategies to Shave Years Off Your Mortgage By Joe Szabo, Scottsdale Real Estate Team

February 26, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team No one wants to spend longer making mortgage payments than they have to. The obvious way to pay off a mortgage faster is to get a shorter-term loan, like a 15-year instead of a 30-year. But on a $300,000 home purchase with 10 percent down, you’ll pay about $620 more per month on a 15-year loan than on a 30-year loan (including mortgage insurance), which might be too expensive for you. So how do you fix your budget with a loan you can afford, yet still pay it off early if you have extra money? Here’s a look at four common approaches.

Refinance, then reinvest savings

It’s always prudent to evaluate refinancing when rates drop, but unless you refinance from a 30-year loan to a 15-year loan, refinancing doesn’t automatically shave years off your mortgage. If you bought a home for $300,000 with 10 percent down five years ago, the rate on your 30-year fixed loan of $270,000 was about 4.875 percent, giving you a payment of $1,429 (plus mortgage insurance). With today’s refinance rates of about 3.625 percent on your remaining $247,494 balance, your new payment would be $1,129, saving you $300 per month. It’s a huge savings, but you’re resetting your payoff clock from 25 years back to 30 years. However, if you take the extra step of applying the $300 savings toward your new loan each month, you’ll shave 9.5 years off your new mortgage, giving you a shorter term for the same budget. You can run your own refinance calculations to find the best balance between monthly budget and the fastest loan payoff.

Make biweekly payments

A biweekly payment plan is the simplest way to shorten your mortgage without a material budget increase. This plan shaves about four years off your mortgage by paying half your payment every other week. Doing so means you’re making 26 biweekly payments per year, which is the equivalent of 13 monthly mortgage payments per year instead of 12. Your budget can usually absorb this because you’re simply chopping your mortgage payment in half and paying each half every other week. On a $300,000 home purchase with 10 percent down, a 30-year fixed rate of 3.625 percent gives you a payment of $1,231 (plus $88 in mortgage insurance). By paying half ($616) every two weeks, you’re paying your loan down by an extra $103 per month, ultimately saving $26,511 in interest and paying off your loan in about 26 years. Your lender can brief you on how to set up a biweekly payment plan.

Increase your monthly payment amount

The biweekly example above shortens your 30-year loan term four years by paying about $100 extra per month, but what if you could afford more? If you paid $200 extra per month on your 30-year fixed loan at 3.625 percent on a home purchase of $300,000 with 10 percent down, you’d save $42,969 in interest and pay off your loan six years and eight months years early. If you paid $300 extra per month, you’d save $57,122 in interest and pay off your loan eight years and 11 months early. And if you paid $400 extra per month, you’d save $68,426 in interest and pay off your loan 10 years and 10 months early. Once you go higher than this, it’s worth looking at whether your budget can accommodate a 15-year loan, because rates on 15-year loans are about 0.5 percent lower than 30-year fixed loans, which means $113 less interest per month versus the 30-year loan. That’s a clear interest cost savings, but your budget is higher: you pay $1,881 per month (plus $59 for mortgage insurance) for a 15-year loan versus $1,231 per month for a 30-year loan (plus $88 for mortgage insurance).

Make one-time loan payments when you get extra cash

If you can’t commit to the 15-year loan budget but know you may have cash infusions along the way — like bonuses from work, inheritances, or selling other properties or investments — you can shave years off your 30-year mortgage by doing a large loan pay-down. Here are two scenarios using a $300,000 purchase price with 10 percent down:

If you got a bonus at work and paid down your loan by $10,000 in year three, you’d save $15,747 in interest and pay off your loan one year and eight months early.
If you got a signing bonus for a new job and paid down your loan by $25,000 in year five, you’d save $32,556 in interest and pay off your loan three years and 10 months early.

Normally, when you pay extra on your loan, it shaves years off your mortgage, but your payment stays the same. However, for large one-time pay-downs like this, some lenders may lower your payment, too. When you’re shopping for mortgage lenders, ask them in advance if they’re willing to do this. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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