Is It a Good Idea to Prepay on My Mortgage?
The Advantages of Prepaying on Mortgage
Prepaying on a mortgage should be done by people in a sound financial position. A good financial situation means that you do not have other debts or aren’t servicing other contributions, such as your retirement deductions and other emergency contributions. Before you decide on prepayment, it is prudent to check with your mortgage provider about the terms and conditions they have set for prepayment. Coordinating with your loan provider will save you from inconsistencies and penalties that the company may impose on prepayments.
Mortgage prepayments involve making an extra payment on the loan principal early so that you complete payment before the scheduled date. Prepayment can be done in various ways, such as making lump sum contributions toward your loan, making extra payments over your standard loan payment every month, and other methods. Some of the advantages that may accrue to a person who does prepayments include the following;
You End up Paying the Mortgage Faster than Expected– Prepayments help the mortgage takers to spend less time paying for their mortgage. The less time spent on mortgage payments means that people can concentrate on other important things in their life. Nobody would enjoy paying mortgages for the rest of their lives.
Prepayments Reduce the Overall Interest to be Paid– Paying your mortgage loan early helps to reduce the interest amount paid over the entire period of loan repayment. Prepayments also give people a good credit score helping them to get excellent financial terms in the future.
Demerits of Prepayment on Mortgages
Prepayments take away the cash from other exciting opportunities. Paying an extra amount on top of your standard rates will divert your money, leaving you with little or no amount to invest in lucrative deals.
Should I Move or Remodel My Current Home?
Everyone has a unique option on whether to leave or remodel their old homes. However, there are a few factors you should consider before making the decision. Below are some of the fundamentals in deciding whether to vacate or remodel your home.
No matter the path you choose, there is a cost expectation. However, cost considerations should be embraced to attain a cost-saving schedule. These costs include commissions, moving expenses, the price of the new home, and upsizing fees. For instance, some people find it cheaper or even more profitable to sell their homes; on the other hand, others decide to remodel their current home to avoid the costs associated with buying a new one.
Emotional Connection to the Community
Sometimes living in a good community is more important than location and money considerations. Factors such as an established rapport with your community and family relations are paramount. There are people with fundamental duties such as taking care of the elderly and also child care. Additionally, distance to work and education for the kids are also important considerations. Shopping and other fun activities, such as restaurants and parks, are also incorporated into decision-making.
Consider Researching First
Research is essential in determining market situations. For instance, it can dictate whether you will make a profit and the demand to sell the house. If you seek to sell the property, you need to determine which agent will best fulfill your needs. It would be best to research the value of the intended neighborhood of relocation. The cost of renovating the home also demands research.
Be Pragmatic on What Will be Solved by Remodeling
People tend to think that renovation will resolve all the problems they have with their homes. However, there are several adamant factors that remodeling can’t fix– if you have loud neighbors, there are no remodeling strategies that can eradicate that. Also, the size of the home cannot be altered by renovating the house.
Make Sure to Assess the Risk Carefully
Building a more luxurious house may demand more financial commitment. Also, relocating to a new neighborhood may lead to incurring higher costs depending on its market state. However, a mid-priced community can accommodate a lower cost and affordable living.
NYC Rental Market Trends for 2021
The pandemic was not lenient to the rental markets in New York. It caused uncertainties in the sector, which led to an inevitable low demand. This was primarily attributed to the closure of many small businesses and high rates of unemployment in the city. However, there has been an attempt to turn the pandemic situation around, resulting in the following dynamics in the rental market and real estate industry.
Administration of Covid-19 Vaccines
It has recently been evident that most people are leaving the city and few or no getting in. Measures have been in place to get employees back to offices and other working stations. It is geared towards curbing the vacancy rate by people occupying the city.
Nonetheless, it is not a walk in the park, and landlords and other stakeholders hope to regain the pre-pandemic levels of income and sales. However, speculations indicate that the rise back to the pristine conditions is likely to take a couple of years.
Quivered Rent for 2021
New York City’s rent status has been adamant for a perpetual duration. However, the pandemic has seen it stumble, with most areas experiencing hiked vacancies and low demand. For example, Manhattan, among the most populated areas in the city, recorded more than 6 percent. Also, rent has dropped by a significant percentage of about 10 percent, which is significantly higher. Its impacts are set to make the city “younger.”
Lifting the SALT Deduction Cap
Donald Trump’s Tax Cuts and Jobs Act has thwarted the industry. It began in 2018 and currently stands at a $10,000 cap on state and local tax deductions. Despite the critics trying to repeal it, none have been successful. There seems to be light at the end of the tunnel with projections that Biden will repeal them.
Low Priced Purchases and Sales
Even before the pandemic, the market did not stand on the best grounds. There was a large number of condominiums that weren’t sold, with an estimation of over six years for them to sell. It has resulted in discounted offers from individual buyers in an attempt to tame the situation. Developers need cash, and headlines have hit on banks’ foreclosure efforts.
About Avraham Glattman
Avraham Glattman is the owner of First American Properties Group, a real estate business based in New York City, New York.
Avraham brings over 26 years of experience working as a real estate agent in the city, where he continues to work today. He graduated from Newport University with a Bachelor’s Degree in Business Administration and Management and remained at the university to attain his Masters of Business Administration (M.B.A.). After graduation, he jumped straight into the real estate field in 1992 in the greater New York City area. Throughout his career, Avraham has explored listings across the New York area, keeping a detailed account of the locations, pricing and comparable properties in the housing market.
After gaining a wealth of knowledge about the real estate marketing in New York, Avraham Glattman decided to take it a step further by creating First American Properties Group with his longtime business partner, Pete Jacov in 2008. First American Properties is a real estate and development company that services the five boroughs of New York. The company currently owns residential and commercial properties in Queens, Downtown Brooklyn, Harlem, and Manhattan. The company focuses on monitoring the growth and development in different areas of the city, so they can work to establish more patterns of growth and help revitalize the area.
While monitoring the different areas of New York City, Avraham Glattman consistently keeps an eye out on up-and-coming neighborhoods that he could potentially invest in. For example, after seeing Harlem, Avraham was immediately impressed by the neighborhood’s charm, leading him to invest in properties in the area. With a convenient location next to the subway and charming business like music venues in the area, it was not hard to see what attracted Avraham to the area.
Today, Avraham Glattman continues to find new investments with First American Properties Group, alongside his business partner, Pete Jacov. Together, they are working towards the goals that they set for First American Properties Group. The goals include acquiring property in the Harlem area to renovate and sell, as well as acquiring properties in all five boroughs.
Avraham Glattman is also the proud owner of 1927 Café Bar Popularr. Located in Harlem, the café serves a variety of open-faced Mediterranean sandwiches, called ‘Toastics’, and many types of coffee. Café Bar Popularr is proud of the rich artistic traditions of Harlem, and invites local musicians, authors, and comedians to visit and share their talents with friends.
Avraham was born and raised in Israel, where he went graduated high school. Not long after, he served in the Israeli army for three years, before he was sent to the United States to work with an Israeli newspaper in Brooklyn, NY. Not long after making the move to New York, Avraham met the woman that would become his wife in 1991. Together, they have three children.
In his spare time, Avraham Glattman enjoys spending his time with his wife and three children and loves to explore new parts of New York City. Avraham’s incredible dedication to both his work and family brings him immense happiness and purpose each day.
To learn more about who Avraham Glattman is, visit AvrahamGlattmanNewYork.com.