Uncategorized
Refinancing
As you know mortgage rates change daily. You may consider the savings in interest by refinancing your mortgage. Pilgrim Colonial works with several lenders in this process. When you apply for refinancing, an appraisal is ordered. Pilgrim Colonial will contact you to set up a time to inspect your property. Note, all federal bank transactions must initiate the appraiser. This cannot be ordered directly through Pilgrim Colonial. We measure your home and note the condition and quality of the property. A thorough data analysis of the market is also done to formulate an opinion of market value for the property. The savings can be worth considering refinancing. There are several refinancing calculators to determine the savings. Speak with a financial adviser to see if refinancing is right for you.
blog
LTV – Loan to Value
Loan to value is simply a ratio between your loan and the value of your home. These two elements create the equation LTV = Loan Amt / Home Value. Loan amt is considered to be a fixed variable as you can dictate the loan amount you choose. Home values is a variable that will fluctuate over time. Ex. You borrow $80,000 for a home worth $100,000. Your LTV is LTV = 80000/100000 = .80 Typically, LTVs lower than .80 (80%) allow for the removal of PMI. Lenders have different requirements so its important to speak to them for the specifics. Ultimately the more you pay down your loan OR the higher the value your home goes will lower your LTV rate. If this house you purchased for $100,000 is now worth $120,000, then your LTV is LTV = 80000/120000 = .67(67%). This is also assuming you didnt pay down the loan over that time so in actuality, the LTV would be lower depending on that timeline. Why this is important is because if you are on the line of qualifying for PMI removal or being eligible for refinance, its important to keep your options open. The best way to do this is pay down your mortgage the best you can. This gives you options in the future if you have a hardship and need to refinance. If the market is down or interest rates have climbed, you've enabled yourself to be in a situation where you can avoid problems. Here are some suggestions for increasing home values.
FHA Property
FHA Approved Loans under FHA require a certified residential real estate appraiser in the state of Massachusetts. We are trained and understand the rules and procedures in FHA's guidance and policy documents. FHA loans are essentially insured by the Federal Housing Administration. This is a federal agency within HUD (U.S. Department of Housing and Urban Development. FHA does not lend money however its a safeguard to protect lenders with mortgage insurance. FHA was created to provide low-income to moderate income families that do not qualify for conventional lending. Order an FHA Appraisal .
Taxes & Charitable Donations
In order to be able to deduct the donation of real estate, an appraisal may be required. Speak to your accountant for specifics, but often times a donor who claims a charitable deduction of $5,000 or more for a single item or for multiple similar items of personal or real property must obtain an appraisal from an independent party. The appraisal will be based on the date the property is donated. Commonly, these types of appraisals require a retrospective value, which means the appraiser will provide a value based on a date in the past (contribution date). Pilgrim Colonial has experience with these types of appraisals and can satisfy requirements needed in this process. Order an appraisal for charitable donations today .
Financial Planning & Trusts
Real estate is commonly the largest asset individuals hold. Getting your financial affairs in order as you approach retirement is highly recommended. You may already be retired and just need some guidance. Pilgrim Colonial understands what is required for your estate planner and we are ready to work for you. We work with planners so they can deliver accurate value and advice to their clients. Whether it be for estates, trust, tax planning or asset valuation, Pilgrim Colonial has the ability and the understanding of the process involved for your plan. Financial planners seek the advice of appraisers to deliver solid advice to their clients. Choose Pilgrim Colonial and order an appraisal today.
