This Will Have a Big Impact on Your Monthly Payment

Do you know how property taxes and insurance affect your monthly house payment? They can adjust year by year, so it's important to consider them when you decide on your monthly payment.

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Do you know how property taxes and insurance affect your monthly mortgage payment?

Your property taxes and insurance are added to your principal and interest to make your total monthly payment. They're held in an escrow account so that when they need to be paid (typically on a semi-annual basis) they'll be available. It's great that you don't need to pay them individually, but you need to consider them as you decide how much you can afford for your monthly mortgage payment.
Property taxes and insurance adjust each year, affecting your monthly payment.
Here's the kicker—property taxes and insurance will adjust each year, so your escrow account will adjust each year, which could affect your monthly mortgage payment.

A good real world example is a client of mine who contacted me telling me that her property taxes are changing from $1,200 a year to $4,000 a year. This will change her monthly mortgage payment by $600! This amount would really affect our budgets moving forward in years to come.

Really think about your property taxes and insurance as you decide what your monthly mortgage payment will be and what you can afford. If you have any questions about this topic, we're always here to help. Just give me a call or send me an email.

How to Make a Strong Offer in a Competitive Market

Price is an important aspect of your home offer, but it’s not the most important part. There are three things that can strengthen your offer just as much.

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When buying a home in a multiple offer situation, it’s important to know how to write an offer so that it stands out among the others. Increasing the price of your offer will always make it stronger, but there are ways to make a stronger offer without necessarily increasing the price. Here are three ways to do that:

1. Create a closing date as close to your offer date as possible. The longer it takes a home to close, the more risk the seller takes on. A lot of things can happen in a month or two, so making sure you reduce the length of your closing will reduce the seller’s risk and strengthen your offer.

2. Reduce or eliminate as many contingencies as possible. Especially in a multiple offer situation, if you can reduce or eliminate some contingencies, your offer will be much stronger in the seller’s eyes.

3. Write a personal letter. In today’s society, we are as disconnected as ever due to technology and social media. A lot of personal touches aren’t used anymore. Write a letter to the seller that tells them how the house makes you feel and how much you want to continue to build memories in it. I have seen a personal letter win one of my clients a home in a multiple offer situation where their purchase price was lower than others.

Those are just three ways you can negotiate a strong offer without paying the highest price. If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you.