Whether you're refinancing your current home or buying a new one, something worth considering is a 15 year loan rather than a 30 year term.  The payments will be a little higher but you'll get a lower interest rate and you'll build equity much faster.

Let's look at an example of a $200,000 mortgage with the choice of a 30 year term with a 3.75% rate compared to a 15 year term with a 2.875% rate.  The payments would be $442.94 higher on the shorter term but the equity would be considerably higher even after you adjust for the higher payments.

Another benefit is that the shorter term loan creates a forced savings situation where the savings on a longer term loan might end up being spent rather than being saved and invested.  Contact me if you'd like a recommendation of a trusted lender.

 

"Anyone may arrange his affairs so that his taxes shall be as low as possible...for nobody owes any public duty to pay more than the law demands."
Judge Learned Hand

This opinion refers to federal income tax but the logic and spirit can easily be applied to any tax including property tax. Most property tax is based on a valuation called an assessment placed on the property by a government taxing authority.

When property values rise due to appreciation, the assessments usually rise. However, when values decline as they have done in many areas in the past few years, the assessments should follow accordingly.

If you don’t believe your assessment reflects market value, put together proof to support your position. Recent comparable sales, similar in size, condition and location are very persuasive. Check is to see if the square footage on the assessment is accurate. If the home is not in good condition, take pictures to show that.

Your real estate professional can supply the comparables, filing deadlines and other pertinent information needed to make a challenge. Lowering your assessment will result in lower property taxes and more money in your pocket.

Some residents of Augusta, Georgia have purchased tickets to the Master's for years but have never attended the famous golf tournament.  It's because they include the tickets as a bonus to the people who rent their home during the event.

Each year, owners rent their home for a big premium during the Masters and make tax-free income.  Homeowners benefit from a little known provision in the tax code that does not require taxpayers to recognize the income derived from renting their home for less than 15 days per year.  See Rental of property also used as home on IRS.gov.

Large sporting events like golf and tennis tournaments, championship games and other high attendance events increase the demand for a temporary rental of a private residence.  Obviously, there are challenges with personal belongings and damage but getting a premium rental rate with a substantial deposit and not having to recognize the income could be worth it.  

You'll certainly want to discuss this with your tax professional prior to making this decision.  You'll probably also want to get some help from an experienced real estate professional.

Automatic thermostats can lower your monthly utility costs while conveniently regulating your comfort by adjusting temperatures on your heating and cooling systems.  These can be particularly effective in homes with zoned systems where you live in one area during the day but sleep in a different zone.

There are programmable thermostats available at home improvement stores that can make the adjustments for specific times during the day and specific days of the week.  They'll allow you to override the setting when needed without tampering with the programming.  They'll even remind you to change your filter.

An exciting development is the Wi-Fi enabled thermostat that allows adjustments from any Internet connection such as computer or Smartphone.  Imagine how convenient it can be to change your temperature from the car before you get home.

Reasonably priced under $100 for most models, it makes it easy to recapture the cost of the thermostat quickly.  Most of the thermostats are designed for do-it-yourselfers; however, you can always have a heating and cooling professional install it for you.

© 2012 Pat Zaby, Inc. | Subscription service is available to republish the article by direct mail, social media or blog.

Personal computers have been around long enough that everyone has experienced or knows someone who has lost their data due to a hard drive crash, accident or burglary.  If they had a backup, the loss was inconvenient but not critical.

Do you have a backup for your personal belongings?  Not that you need duplicates of all the items but do you have a journal listing of all the items with a description and their approximate values?  That record becomes the backup that supports the claim for your insurance.

If a building sustains a total loss, the insurance company will usually pay the face amount of the policy.  When it comes to personal property which might be 40% to 50% of the insured value of the dwelling, the insurance company is going to expect an accounting with receipts or at least, a relatively recent inventory.

The better your inventory, the less likely you'll have difficulty with the claim.  Almost everyone has a digital camera that can take stills and probably even videos.  The combination of the images as well as a written description will help you replace the belongings and serve as proof to the insurance company.

Once you've made the inventory, store it off site for safe keeping.  Online storage in the "cloud" might be the best place to insure you'll always know where it is.  Contact me for a free Home Inventory form; it's my way of helping you be a better homeowner.

© 2012 Pat Zaby, Inc. | This article cannot be reprinted or republished without written permission.  Subscription service is available to republish the article in your own blog, newsletter or mail merge.