Fox News’ Jamie Gangel and The Associated Press -NEW YORK (AP) — Be honest about what you’re buying and how much you’re spending, even if that means putting your money where your mouth is.
That’s one of the secrets of a solid real estate portfolio.
For some buyers, the most important thing to know about a property is how much it’s worth.
“If you can sell the house and get more money for it than you’re paying, that’s a big deal,” said Ken Ehrlich, a broker and chief investment officer at a boutique firm in New York.
You may not realize it, but if you’re not careful you’ll end up with more money than you paid.
“It’s very important to know your expenses so you can make wise investments and get better returns,” said Ehrlic, who owns two properties.
The best way to know how much your money is worth is to take the average appraisal by a real estate appraiser and compare it to a mortgage, a car loan, a credit card or other investment, he said.
“I would say you’re getting a good return if you are getting that information from the appraisal, and then you can figure out how much to pay for the house,” he said, referring to the closing costs of a house.
“A good real estate agent is a real asset manager, and they’re in the business of keeping you in the game.”
What you should know about the mortgage on a home The average price for a single-family home in New England is $1,056,400, according to the National Association of Realtors.
That is $2,639,400 more than the median home price in the state.
That $1 million price tag comes with a monthly payment of about $1.50, so if you pay $500 a month for a 10-year mortgage, you’re going to pay about $2.25 a month.
The average monthly payment for a 2-year fixed mortgage in New Hampshire is about $4,600.
That means you’ll pay about 6 percent a month on the $1-million mortgage, according the National Assn.
of Realty Advisors.
But you’ll save about $300 a month by refinancing the loan with a lower-cost mortgage, said John Langer, president of Revenant Realty Group, which offers mortgage-to-value (MV) equity loans in New Mexico, Oklahoma and Arkansas.
For example, if you had $50,000 in your home, you could refinance the loan at a 30-year rate of 2.25 percent, with a down payment of $1 per year.
That would save you $500 in monthly payments and $250 in principal.
Langer said you should also consider paying down the interest rate from 5 percent to 1 percent if you don’t want to pay monthly fees for 10 years.
If you’re still thinking about refinancing, Langer says you can refinance for a lower cost, if it makes sense for you.
“You can do it for the lowest rate you’re comfortable with, but it’s also important to remember that you’re in a variable rate,” he added.
“The interest rate is not the most attractive part of a mortgage.
The thing you want to know is how far along you are in the loan.”
Langer added that if you get an offer for a house, you should look at the house’s market value and the value of the existing property before you buy it.
The market value of your house is usually the same as the market value for the entire property.
So if the house has been in the market for 30 years, you can’t really say you have a good value for it.
“That is an estimate of what the market is looking at at the moment, and the market doesn’t want you to be selling a house at the market rate,” said Langer.
So how do you get the best return?
A good realtor will try to sell you a house for the same price you paid for it when you bought it, so you should expect the same sales price every time you see it, said Lager.
“In the last 10 years, I have seen many houses sell for much less than what they were sold for 30 or 40 years ago,” he noted.
So while you may have a $1M house, it might not be worth the $200,000 you paid at the time of purchase, he added, noting the market may have shifted slightly in recent years.
“Some of the properties that sell for $200k or $300k may have gotten much cheaper in recent months, so they’re selling for much more now,” he explained.
A good agent can also tell you if a house is worth more or less than you thought it would be.
For instance, the median price for two- and three-bedroom houses in New Haven is $525,000,