What is a Seller’s Disclosure? Here’s Why It’s Important

Whether you’re about to purchase a new condo or sell your current home, there is a lot to learn and paperwork to sign. One of these critical documents is called a seller’s disclosure.  

A seller’s disclosure, also known as a property disclosure, is a document that sellers are legally required to provide buyers. This piece of paperwork will include all the undisclosed details related to the property that negatively affect its value. So before you finalize the buying or selling of a home, read on to find out why a seller’s disclosure is an essential part of any real estate transaction.

Why is a seller’s disclosure important?

A seller’s disclosure is a legal document protecting both the seller and the buyer. It protects the buyer by informing them of any issues or defects the home and surrounding property may have. It also safeguards the seller from being sued by the buyer after the transaction if the seller’s disclosure was completed correctly. 

For buyers

The goal of the seller’s disclosure is to inform the buyer of the property’s history and future repairs so buyers can make an informed decision. If the seller’s disclosure reveals a major issue with the home, buyers can back out of the deal without losing earnest money. Any problems documented in the seller’s disclosure can also give the buyer some negotiating power, such as the price of the home or requesting the seller make any necessary repairs. 

For sellers

The seller’s disclosure can only protect the seller if done accurately and honestly. If done correctly, this document will protect the seller from being held legally liable for any issues that may develop with the home in the future. This is only the case if the seller made the buyer fully aware of all home defects before the completed purchase. The seller only needs to disclose what is required by their state.

When should a seller provide the disclosure?

Typically, a seller’s disclosure is provided a few days after mutual acceptance during the closing stages of the transaction. However, some sellers may choose to disclose as early as home tours. The listing agent must be transparent with buyers about any known issues with the property, so some will do this upfront to make the process quicker. Usually, your state will have a standard form the seller fills out, while some states allow sellers to disclose more casually. Before the seller’s disclosure is signed, the buyer can still back out of the deal. However, once it’s signed, the buyer only has a few days to back out of the agreement without consequences. 

How a seller’s disclosure can impact a home sale

The seller’s disclosure can significantly impact the home selling process if a property has substantial issues. Buyers will need to decide if they’re comfortable with any significant issues disclosed and get a professional inspection to assess what it takes to handle the problem. As a buyer, it’s important to carefully review the seller’s disclosure packets with a real estate agent and during the home inspection. 

What are the standard real estate disclosures?

Each state has different requirements for seller disclosures – it’s best to check with your state’s guidelines. They can vary on a county basis, so make sure to check there as well. To help you get an idea of what to expect, here’s a list of standard disclosures: 

Neighborhood nuisances: Often refers to noise or odor from a source outside the property that could irritate the homeowners. 

Hazards: High risk of natural disasters or threats like contamination, lead paint, radon, asbestos, and toxic mold.

Repairs: Any significant repairs the house may need and has had. Significant repairs would include structural, electrical, and plumbing issues.

Water damage: Flood risk or existing flood damage.

Missing items: The seller needs to list any items that will be removed after the sale, such as refrigerators or lighting fixtures.

Death: Sellers are required to disclose deaths that occurred because of the property’s condition or violent crimes that occurred on the property.

Other possible disclosures: Other disclosures could include special historical districts, homeowners associations, and unpermitted improvements. 

Not every state requires all of these disclosures. Most required documentation is mandated at the state level, but there are a few federally mandated disclosures. Some federally mandated disclosures include lead paint, asbestos, wetlands, and floodplain disclosures. If you want to know something about the property, you can always ask the seller. Take time to understand what disclosures aren’t required to be disclosed in your state. That way, you’ll know what to ask when the time comes.

As a buyer, will I always receive a seller’s disclosure? 

There are several circumstances in which a buyer may not receive a seller’s disclosure – this is known as a “no seller’s disclosure sale.” This means the seller is selling the property without disclosing any defects or issues that the buyer might need to know to make an informed decision. We’ve outlined the basics below, but visit your state government page for further information.

Selling an as-is property

A foreclosure or deed-in-lieu of foreclosure (usually applies to a bank-owned home)

A gift or other transfer to a parent, spouse, domestic partner, or child

A transfer between spouses or between domestic partners in connection with a divorce or ending of domestic partnership

Certain business transfers in which the buyer already had partial ownership of the property (usually applies to rental properties)

Estate sales or bankruptcy sales

Sales in which the buyer waives the right to disclosure. However, the buyer can’t waive certain environmental disclosures, which refer to naturally occurring concerns like mold or flood zones. 

If a no seller’s disclosure occurs, there will be a due diligence period. During this time, the buyer will thoroughly inspect the property. If the buyer goes through the due diligence and closing process, about 14 days, without raising any concerns, then they’re deemed to have waived their rights against the seller.

What happens if the sellers fail to disclose issues adequately?

If the seller fails to disclose or actively conceals problems they’re aware of that affect the property’s value, the buyer can sue. The seller can be subject to lawsuits for recovery of damages based on fraud, deceit, misrepresentation, and breach of contract. If the law doesn’t require you to disclose something, it’s best practice to find out if it may impact the buyer. 

Even with a seller’s disclosure, don’t skip a home inspection

In addition to the seller’s disclosures, the buyer should always have an inspection done. No matter how thorough or trustworthy the seller may be, a seller’s disclosure is no substitute for a thorough home inspection by a licensed and qualified professional. Most buyers aren’t trained to look for and identify the issues that can affect the average home. Before you buy, it’s in your best interest to get an inspection. 

Final takeaways about seller disclosures

The seller’s disclosure is necessary for both sellers and buyers.

There are several disclosures, but not all will be mandatory in your state. Work with a real estate professional to understand your situation better. 

In some cases, you will not receive a seller’s disclosure. This is known as a “no seller’s disclosure sale.” 

In addition to a seller’s disclosure, it’s recommended to have a professional inspection of the property still.

What is a Ranch Style House?

As one of the most popular home styles across the country, ranch-style houses are versatile and appeal to a variety of homebuyers. With their minimalist exterior, open-concept interior, and relative affordability, you might just consider bumping a ranch house to the top of your list when house-hunting.

What is a ranch style house?

A ranch style house is typically a single-story home, with an open layout. This home style is popular amongst first time homebuyers and experienced homeowners alike. Ranch homes, sometimes called ramblers, are not directly associated with ranchers, but take the name from their open-space concept and ability for one to roam around inside.

Where are rambler style houses popular?

You can find ranch style homes in most states and cities across the US, ranging from Los Angeles, CA and Phoenix, AZ, to Charlotte, NC, and Columbus, OH. Generally, ranch homes are less popular in Northeastern cities, so it may take a bit more searching to find the ranch home of your dreams on the East Coast.

Ranch style house plans

While there are a few different spins on the ranch style home, several characteristics tie these architectural styles together, creating the basic concept of the rambler home. Let’s take a look at the features that make a ranch style house.

Ranch house exterior characteristics

A ranch home’s exterior is known for its U-, L-shape or rectangular layout, low pitched roof, and mixed material outside – often brick, stone, wood, or stucco. Ranch homes also feature wide, overhanging eaves, large windows and sliding glass doors, plenty of outdoor space such as a patio or deck, and an attached garage. Compared to the ornate exteriors of Victorian homes, the Rambler house has a more streamlined exterior with minimal details.

Ranch house interior characteristics

The interior floor plan of a rambler house is characterized by its single-story and open concept living room, kitchen, and dining area. Bedrooms in this style of home are separate from the living space and many homes have a basement that functions as another living room. Ranch homes have minimal architectural details, leaving room for owners to put their own stamp on the home’s interior.

When it comes to designing the open concept interior of a rambler, everything old is new again. The open concept is rooted in the advent of the 1950s and 60s ranch house, which shed traditionally-defined and closed-off spaces for casual modern living and outdoor access. These principles can guide your open concept renovation today. Spaces that combine kitchen, living, and dining bring people together and invite full participation by the household members and guests. Vaulted ceilings uplift and inspire creativity. Soft, neutral palettes and clear windows and doors allow nature’s hues to calm and fill spaces with light.

You can also stick to creating a “color story.” The best way to create a beautiful, interesting, and cohesive open concept space is to have all of the spaces tell the same “color story.” Hone in on a tight “whole house” color palette using your favorite colors and neutrals, and play with them using different tones and intensities throughout your house. Connecting rooms with color – like a touch of black in kitchen hardware that speaks to the black framed chairs in the living room and black metal light fixture in the entryway – will help unify the spaces, without them feeling too matchy-matchy.

To create space in the typical open floor plan of a ranch home the use of area rugs is highlighted. One of the best ways to design an open concept living space is to zone it out using area rugs. Each section of the room would have an area rug to designate that space and you’d style it as if it were that room, i.e. the living room or dining room. Then, incorporate colors or patterns throughout to tie the open space together.

Another critical step in designing an open concept space is to look at the floor plan before making any major decisions. It is recommended to mock up ideas. This allows visualization of multiple floor plan layouts and works through the impact on furniture layout and traffic flow prior to committing to a plan.

6 types of rambler style homes

As with many home styles, ranch houses are not limited to one single “look.” Specifically, there are six types of ranch style homes you may find in your home search. Here’s what they look like and what features you can typically expect.

1.     California ranch house style

The California ranch style, also called a rambling ranch, is the quintessential rambler home. Often built in a U- or L-shape, the California ranch home takes inspiration from Spanish architecture and the Arts and Crafts movement popularized in the late 19th and early 20th centuries. California ranch homes often mix into nature and feature a large front yard and porch, as well as Spanish-style details and a courtyard.

2.     Suburban ranch house style

With the rise of suburbia in the post-World War II era, suburban ranch style homes became increasingly popular as many Americans left city life behind. These ranch houses are more simplistic in style as they were easily replicated throughout suburban America. Featuring concrete-slab foundations, suburban ranch homes tend to be smaller, but still have that open-concept layout and U- or L-shaped design.

3.     Split-level ranch house style

Unlike the typical ranch style home, split-level ranch homes are generally three stories with living space on each floor. Popularized in the 1960s and 1970s, split-level ranches often enter into the kitchen, living, and dining areas with stairs leading to the additional living space below and above the entry-level. While they have an asymmetrical exterior, their design is more minimalist, like suburban rambler homes.

4.     Raised ranch house style

Often confused with split-level ranches, raised ranches – also called split-entry ranches – are distinctly different. Raised ranch homes open to a stairwell, leading to the two levels in the home. Upstairs typically consists of the standard open-plan kitchen, living room, and dining space, as well as bedrooms and bathrooms. The downstairs features a finished basement and garage.

5.     Storybook ranch house style

Also called Cinderella or fairytale ranches, storybook ranch homes are reminiscent of a fairytale cottage with their ornate exterior details. Instead of the classic low-pitched roof, storybook ramblers typically have a steeper gabled roof. Exteriors also have diamond-shaped windows, thatched shingles, and decorative brick or stone chimneys and facades.

6.    Modern ranch house style

An updated version of a classic California ranch style is the modern ranch home, appearing throughout the 1990s and early 2000s. Similar in style to California ranch homes, the modern ranch house uses a variety of materials like wood and stone to blend into nearby nature. However, modern ramblers don’t have any Spanish architectural influence, meaning you’ll find more clean lines and updated interiors.

Pros and cons of a ranch house

Even with the most well-known and popular style homes, there are pros and cons to each of them. Before taking the step and buying a rambler house in your area, become familiar with the pros and cons to make sure you’re choosing the right house style for your needs.

Pros of ranch houses

• Open floor plan: One of the biggest advantages of owning a ranch house is the open floor plan, which is often a desirable home trend. That means no knocking down walls to create the perfect blend of kitchen, living, and dining room space. Open concept living rooms are a favorite for homebuyers for many reasons. First, it can make even the smallest space feel bigger and brighter. A small townhouse with a windowless kitchen off the living room can be transformed into a light filled living room space by replacing the wall with an island on the console table.

• Single story: While some rambler house styles have more than one story, the majority have a single story, meaning it can be much easier for homeowners to get around. No stairs also means more living space on a single floor.

• Easier maintenance: As the majority of ranch homes are a single story, exterior maintenance can be much easier. Seasonal maintenance like cleaning gutters and windows is less dangerous as you only have one story to maintain.

Cons of ranch houses

• Less privacy: While not immediately obvious, there can be the feeling of less privacy in a ranch house as all of the bedrooms and living spaces are on one floor. Some homeowners may feel more secure with the primary bedroom on the second floor. There are certainly some challenges when you rave about the space, light, and flow that a large living room gives us. Obviously, privacy is lost when you have a big open living room. Talking on the phone in the kitchen while your kids are watching TV can be difficult. You also lose wall space for your photos and artwork. Additionally, fewer walls also mean fewer electrical outlets and concealing wires in a large, open space can be tricky.

• Single story: Single stories can be both a pro and a con. As for the cons, all the living spaces and bedrooms are on one floor, meaning noise can travel, especially if you have more people living in the home.

• Smaller outdoor space: Depending on the size of the lot, some rambler homes may have less outdoor space, as the lot is taken up by the home itself. And if you’re considering extending the square footage of the home in the future, it can take up even more outdoor space.

How to Save 20% When You BIY Instead of DIY

You want to get projects done around the house, but you lack the skills, desire, or the time to DIY. The other side of the coin—hiring it all out—is an expensive option you’d like to avoid. What to do? BIY, that’s what.

BIY—buy-it-yourself—is a smart, middle ground for those who want to upgrade their homes, be actively involved in the process, and keep a lid on the budget. BIY efforts can save up to 20% on home improvements by shopping for bargains and eliminating contractor markups on materials and finishes. It’s a growing trend industry experts and big-box home improvement centers are watching closely, defining BIY as its own genre. It has been found that about 17% of homeowners have completed BIY projects and that demographics play a role. Many millennials don’t have the same DIY mindset that their parents had, but they still want to be hands on when it comes to fixing up and improving their homes. They know how to buy stuff. Mining online information is second nature for millennial BIYers, who eagerly search for price comparisons, peer product reviews, and instructional videos.

The BIY Basics

Buy-it-yourselfers research the materials, finishes, and appliances their project requires, then shop for the best deals possible on the items, purchase them, and have them delivered to the work site. That way, they avoid markups that a contractor or subcontractor routinely applies to the materials they buy. A BIYer also does these things:

• Avoids any hourly charges a contractor adds for picking up and delivering the BIY materials

• Negotiates directly with suppliers for the best price on items

• Is able to find bargains a contractor may overlook

Good BIYers work closely with their contractor or builder to decide which products and materials make sense for the BIYer to tackle—and which are best left to the contractor.

The BIY Skill Set

You might not know which end of a hammer to use, but you’ll still need a good set of skills that include the following:

• A thorough understanding of the scope of your project

• A shop-until-you-drop mind-set

• An obsession with due dates and delivery schedules

• A willingness to communicate tirelessly with your contractor or handyman

Understanding Your Contractor’s POV

Although it may sound like shopping and buying are your primary BIY duties, your number one priority is to have good communication with your builder or subcontractor. Tell prospective contractors upfront about wanting to BIY. Traditionally, contractors have purchased materials and scheduled delivery. They often have established relationships with suppliers that offer steep discounts to them. The contractor in turn marks up 50% or more on those discounted practices. It’s a standard practice in an industry where margins are narrow.

However, many contractors are willing to forgo traditional pricing in order to secure steady work—good news for BIY homeowners. Home improvement centers help by hooking up contractors with homeowners—a practice that is on the rise over the past several years. A contractor’s main concern is a BIYer holding up their end of the bargain by ensuring everything is delivered to the job site on time so that work proceeds smoothly. For you, this means ordering exactly the right types and quantities of materials, and pinning down delivery dates and times. Let your contractor know of any changes (a delivery truck got stuck in Reno) right away.

The Remodeling Contract

Your remodeling contract should clearly state what materials, appliances, and finishes you will supply, and approximate delivery dates. Your contractor needs this information before he can prepare an accurate bid for the work. Any changes to your responsibilities should be stated in writing and signed by both the contractor and you. You’ll want to make sure that any casual suggestions for changes to the scope of your project (and what you’ll provide) don’t result in a contractor dispute.

What to BIY and What Not To

Stick to buying items that will be visible when the project’s done and leave everything else for your contractor to get. Not only will you oversee high-profile finishes, materials, and appliances, but you’ll be assured of getting the look that makes you happy. Here are items that make sense for the BIYer to get.

In the kitchen, consider these for BIY:

• Kitchen cabinets

• Cabinet hardware (pulls and knobs)

• Countertops

• Flooring

• Appliances

• Sinks

• Faucets

• Light fixtures

In the bathroom, these items are smart to BIY:

• Tubs and modular shower enclosures

• Wall tile

• Flooring

• Faucets, shower heads, and tub fillers

• Vanities and cabinets

• Toilets and bidets

• Sinks

• Light fixtures

• Exhaust fans

• Countertops

Around the house, BIY is the way to go for these items:

• Flooring

• Permanent light fixtures

• Siding

• Entry doors

• Interior doors

• Garage doors

• Exterior light fixtures

• Paint

• Landscaping block and stone

Almost everything else is best left to your contractor, including lumber, fasteners, sheathing, concrete, plumbing pipes, electrical wiring, HVAC components, and insulation. Other items are a matter of coordinating with your contractor or designer. Roofing, for example, requires specialized knowledge of how to measure roofs and estimate materials. Once estimated, however, you can choose the style and shop for the right price. Just be sure that you and your contractor are on the same page about your involvement.

Other items requiring this specialized knowledge include these home fixtures:

• Windows. Between rough openings, replacement options, and window sizes themselves, leave the ordering to your pro.

• Gutters and downspouts. Some runs of gutter may be too long to handle repeated expansion and contraction caused by temperature fluctuations. Have a pro advise.

• Paving materials. Brick, stone, asphalt, and concrete require a good knowledge of thickness requirements for the base as well as the paving material itself. Let a pro help.

• Insulation. This item doesn’t really benefit from BIY; your contractor will know local codes and installation techniques.

• Masonry. For siding veneers and landscaping, you pick the type of stone or brick and let an experienced hand do the ordering and return unused materials.

How to Buy It Right

Ah! The fun part! If you’re working with a designer/builder or hiring an architect, you’ll have plans for the finished project. Those plans should include a materials take-off—a list of everything needed for the project. Armed with that list, you’ll be able to shop for exactly the right amount of materials and calculate the price. Confer with your contractor so you’ll both agree on the items you’ll be buying.

Beware of making changes. For example, if plans call for a 36-inch gas range, but while shopping you find an amazing deal on a 36-inch electric range, you might gum up the works if you buy it. The size is right but your contractor may have already run a gas line—not an electrical circuit—to your range location. Could you still make the switch? Sure, but you’ll pay for any extra work. In addition, the change takes time and may throw other subcontractors off their schedules.

What If There’s No Contractor?

If your job is fairly small and you’re planning on using a carpenter or handyman for the work, then you’ll have to do all the measuring and purchasing yourself.

Here’s helpful advice to get it right:

• Measure twice and cut once is the old saying, and it’s a good one. Always double check measurements, and write everything down in a project notebook or in a notebook app you’ll always have with you on your mobile phone or tablet. Your job is made easier by the many materials calculators available online, as well as home improvement apps you can download to your mobile device. Big-box stores offer them at their websites, and you can search according to your needs. Lowe’s, for example, has helpful calculators for flooring, paint, mulch, wallpaper, and other materials.

• Add 10% to measurements of walls, floors, ceilings, and other large surfaces. That ensures you’ll have enough materials to cover broken pieces and slip-ups.

• Enlist help when measuring cabinets and countertops. Home improvement stores have design centers that will help you fit cabinets correctly. They’ll send out subcontractors—free of charge—to measure your space to ensure accuracy. Ditto for countertop fabricators. Most insist on taking their own measurements and checking walls for squareness to ensure a good fit.

•  Watch out for oddballs. Not your handyman—your choices. If you’re picking one-of-a-kind items from overseas or the salvage yard, make sure your handyman is up for the challenge. And make sure you’re ready to cough up a few extra bucks for the extra work and creative solutions required.

• Managing delivery. Keep the job running smoothly by managing delivery dates and times. Make sure you or someone you trust will be there to oversee arrival and storage.

• Pinpoint delivery times. When ordering, try to establish exact times for delivery of materials and appliances. Record the vendor’s customer service number and give them a ring two or three days prior to delivery to make sure it’ll be on time. Make sure your contractor or handyman knows those critical delivery dates and times.

• Clear a space in your garage or spare room, or somewhere on site to stash materials and other goods. There’s nothing wrong with stockpiling materials ahead of installation dates if you have a place to put them.

One More Thing

It bears repeating—the BIY path is one of collaboration and communication. You’ve signed on to be part of a team, however small it may be. Be a good team player, make sure everything runs smoothly, and you’ll end up saving money on your remodel.

Interest Rates: How Fast and How High Will They Climb?

If you’re shopping for a new home now or are hoping for this spring, you probably feel your heart racing a little. The word is out: Mortgage interest rates are on the rise. This means for the same size loan and house, borrowers will have to pay a higher monthly mortgage bill every month. And that’s prompting many homebuyers to feel as if they need to hurry up and find a house, ASAP. It is hard for buyers not to be hyper aware that interest rates are climbing and they know it is important to purchase a home quickly.

The panic and feeling of needing to rush is intensified by the rising cost due to low housing inventory. The median home price for the nation is just over 10% higher than last year at $375,000. This can make buyers feel like they are being hot on both ends.

It’s a hard time to be a homebuyer, for sure. But if your palms are getting sweaty just thinking about what you’ll face when you apply for a loan, it’s time to take a breath and get realistic answers to the questions swirling in your head. For example: How quickly will interest rates rise, and how high will they go?

How high will mortgage rates go—and how fast?

First, a quick Economics 101 lesson to understand what’s going on: At the end of January, the Federal Reserve—a government agency tasked with preserving the health of the U.S. economy—announced that it would be raising its interest rates in mid-March. The goal they have in mind is to control elevated inflation by slowing down consumption. So what does that have to do with mortgages, you ask? Not much, at least not directly. While the Federal Reserve doesn’t set mortgage rates, they do set the rate at which banks borrow and lend to one another. A higher rate for banks makes borrowing more expensive for consumers. Long story short: The Fed’s actions have a ripple effect.

Even though the Fed hasn’t raised interest rates yet, this likelihood has already caused mortgage interest rates to creep up over the past month. Given the expectation of a rate hike in the first half of 2022, investors have already been pushing up rates. They are more than half a point over the last month. In late December, the typical rate was 3.05%. In late January, it was 3.56%.

So just how high will they go? Not as high as you might think, and not all that quickly either. It is expected that the 30-year fixed mortgage rate will be at an average of 3.9% at the end of the year. Even with that increase, mortgage rates will remain near historic lows. So there is no need to panic. 

Still, since a half-point in interest can still add up to a decent chunk of change over the life of a loan, homebuyers may want to get moving on their house hunt sooner rather than later—and be aware that snagging a great interest rate isn’t just about timing. If landing a low rate is a priority for you, here are some tactics that lenders say are more essential than ever to try today.

How a mortgage ‘rate lock’ can help turn back time

Homebuyers should know that there’s a way to freeze time on rising interest rates. How? By paying to “lock in” your rate for a certain number of days. So even if interest rates spike, you get to keep the original rate. The most common rate lock is for 30 days, but there are also options for 15 days, 45 days, or more. Homebuyers pay for a rate lock and spend more money the longer their lock’s in place. So you pay only for what you know you’ll need.

Example: If a lender quotes you 3.5% and it’s a 30- or 45-day lock period—but you plan to close in 10 to 15 days—perhaps you could select a 15-day lock for something even lower, like 3.375%.

If you’ve barely begun your house hunt, however, paying for a longer rate lock may be worth every penny for your peace of mind. The last thing you want is to be racing around trying to find a house right before your rate lock is up!

How mortgage points can help lower interest rates

With interest rates rising, it’s also a good time to consider “buying down” your interest rate by paying points. How this works: Mortgage lenders may offer you the option to pay a lump sum upfront that will effectively lower your interest rate over the life of the loan. Generally, one discount point costs 1% of the total mortgage and will lower the interest rate you pay by around 0.25%.

Let’s do the math: If you obtain a mortgage for $500,000 on a $600,000 home at a 4% lending rate, then pay 1%, or $5,000, to discount your rate to 3.75%, you’ll pay $71.50 less per month and save over $25,000 over the loan’s life.

That’s significant savings just for one discount point. Purchasing more upfront can save you tens and even hundreds of thousands. Many lenders will allow you to buy up to four discount points when you secure a loan.

Why comparing multiple lenders matters now more than ever

Another tactic homebuyers are turning to is to simply shop around and turn over every stone for the best possible loan they can get. Comparing quotes is the best way to get a low mortgage rate. Go online and inquire with multiple lenders. Also shop around within a set window of time. You can apply for as many mortgages as you want within 14 to 45 days.

One often overlooked lender that budget-conscious homebuyers may turn to in a tight market are credit unions. These nonprofit, member-owned banks offer loans, typically at extremely competitive rates. Even if you end up with another bank, it’s a good place to get your bearings on just how low interest rates can go.

A little-known low-interest option: portfolio lenders

Another little-known niche lender today’s homebuyers may want to consider are portfolio mortgage lenders. Unlike with most “conforming” home loans, which get resold to Fannie Mae or Freddie Mac, portfolio mortgage lenders hold on to your loan as part of their portfolio.

This gives portfolio lenders a specific advantage, and they can offer competitive rates with closing costs that are often substantially lower than other competitors in the market. You may also be able to avoid private mortgage insurance, appraisal fees, and other typical costs.

Portfolio lenders are rarely advertised or promoted, so you may have to ask lenders or your real estate agent for recommendations. Your own bank may offer this option, and may be partial to long-term customers. While each institution is a bit different, portfolio lending can provide a very large competitive advantage. It leaves money in the buyer’s pocket, which can turn into additional buying power.

Will more homebuyers embrace an adjustable-rate mortgage?

During the period of historically low interest rates we’ve experienced, many homebuyers have wanted to lock in at a minimum monthly payment for as long as possible. As such, a 30-year fixed-rate loan has been the preferred path for many. But with rates on the upswing, many may turn to the alternative: an adjustable-rate mortgage, or ARM.

ARM loans give you a set number of years at a fixed interest rate. The period could be three, five, seven, or 10 years before they would adjust. During the fixed period, they come with an attractive interest rate that is lower than a 30-year fixed interest rate.

An ARM may be a smart choice if you aren’t planning to stay put for long. For example, you’re buying a home as a young couple but know you’ll be moving in a few years as your family expands. Or you’re near retirement age and plan to downsize and move in the next decade. You’ll want to think about how long you plan on being in the loan. This will help you determine if an ARM would be appropriate for you.

All in all, even if interest rates are rising, there are many hidden pockets where rates remain low if you know where to look.

10 Tips to Create the Ultimate Gaming Room

Video games are big. Like $155 billion big. In fact, it’s estimated that 26% of the world’s population are regular video gamers across various platforms. Given these statistics, it’s likely that you or someone you know is an active video game player.

Video game rooms are a great way to help get more immersed into a game, regardless of the platform. Depending on budget and space, a gaming room can allow you to bring in more computing power, louder and fuller sound, storage for all of your accessories and decals, and can give you an excuse to use that unused room in your home. Whether you’re playing Candy Crush in your bonus room or Fortnite in your small office space, here are 10 gaming room ideas for how to create the ultimate room on any budget.

1) Bring your gaming room idea to life: pick a theme and decide on decor

Before you start purchasing products or ripping down walls, it’s important to decide on an aesthetic or theme for the gaming room. It’s your chance to embrace your favorite game, character, or genre, and manifest your room around that. If you’re using art try to choose art that compliments the game such as a boutique poster and print resource. If you’re framing, make sure the frame contrasts the art – the contrast will make it pop.

Do you like Mario? Try using a lot of reds and yellows, incorporate mushroom décor, and set up lights highlighting cool wall art and posters. Is Zelda your favorite? Focus more on greens and browns, memorabilia, and custom artwork. Fancy Call of Duty? Try embodying realistic art and camouflage colors throughout your room, and make sure your gaming setup is top tier. 

This first step is about brainstorming and being creative with your space. Choose something that you like and run with it. You want to be able to walk into your gaming room and feel inspired by simply being in your space.

2) Ensure you have a reliable internet connection

While this may sound obvious, it’s so important. Most games nowadays require an internet connection to play or at least have certain features that are unusable without one. Having a consistent connection will raise your gaming experience to the next level. 

While one gigabit (Gbps) and even 2 Gbps internet is all the rage nowadays, you don’t actually need very much internet speed to play an online video game. Most people agree that you only need a download speed of 5 Mbps or faster to enjoy the most a game has to offer. Removing the nagging worry of losing connection in the middle of a match or online chat is a huge boost to the effectiveness of your gaming room.

3) Incorporate tabletops, storage, renovation, and customization

Now that you’ve chosen a theme and have your internet all sorted, it’s time to make some larger changes and additions to your gaming room. This is the stage when you can tear down a wall, commission a custom-built desk or storage space, or purchase that desk you’ve had your eye on for months. The entire room is now yours to mold.

Desks: Your desk will likely be a centerpiece of your gaming room, so investing some extra time and money will make your room feel more like your own. There are many routes you can take depending on your space, but some common custom desk styles include:

• Floating/wall-mounted

• Standing/adjustable height 

• Corner

• Tall

• Curved

If you have limited space, use a floating desk to allow for more storage. If you have more space, try a longer, curved desk for extra desktops and decals. If you are going the more expensive custom route, you can even incorporate many of the above styles into one unique desk. 

Other furniture options and gaming room customization ideas:

Shelving units, side tables, couches, custom display cases for your memorabilia, TV stands, and mirrors are just some of the other furniture options to consider. There are also countless room customization or renovation possibilities. Add or remove a window or wall, paint the walls, add new carpet, or do anything else your heart desires. 

It’s important that you conquer the big projects before moving on to the nitty-gritty. This process will vary widely depending on your budget, but even DIYing a floating shelf can add that extra touch of personality. 

Creating the ultimate gaming room should center around two vital components: comfort and organization. You want to select a comfortable chair with lumbar support for endless fun, and you want to ensure it’s easy to find your games and accessories. A sleek lateral open shelf cabinet allows you to store all your games and extra equipment while sticking with the aesthetic of the room.

4) Choose a perfect gaming seat

You’ll likely spend most of your time here between consoles and your desktop, so it should be the pinnacle of comfort and style. Spending time fidgeting or squirming trying to get comfortable only takes away from your high-level gameplay. 

There are loads of different gaming chair styles to choose from here, ranging from a standard desk chair, to a custom-fitted leather racer chair with magnetic armrests and an adjustable headrest, to a gaming armchair lounger. The main priority should be to get a good chair that will provide support throughout your gaming session. Purchase a chair that keeps you comfortable and allows you to focus for hours on end. Don’t feel the need to overstretch your budget; there are plenty of affordable options that provide comfort and longevity.

 5) Invest in quality displays

You’ll be looking at your displays for hours on end while you game, so choose carefully. There are three general choices to choose from: monitors, televisions, and projectors. Monitors benefit from their smaller size and versatility, while projection screens can enhance your experience by increasing immersion. Not only do projector screens give you a cinematic feel, but they are better for your eyes as well.

Projectors are generally best for much larger rooms and are hard to move from one room to another. TVs are the perfect option for those who like consoles and will be sitting farther away from the screen. However, since monitors tend to be the most popular, let’s take a close look at those. 

When it comes to monitors, there are four general quality aspects to take into account when choosing a monitor for your gaming room:

• Size: This is the diagonal distance between opposite corners of the screen, i.e. a 13” laptop measures 13” from the top right of the screen to the bottom left. 

• Resolution: This is what determines the sharpness of the image on your screen. The more pixels your screen has, i.e. 1920 x 1080, the better your resolution will be.

• Refresh Rates: This describes the frequency that a display updates or “redraws” an onscreen image. The amount of refreshes per second is measured in Hz, i.e. a refresh rate of 144 Hz means the screen refreshes 144 times per second. The higher the better.

• Price: Prices for monitors range from under $100 to $2000+. While the expensive monitors may look great, the lower end of the spectrum provides more than adequate quality. 

Typically, most would agree that size doesn’t matter as much as resolution or refresh rate, and most games will look great on your standard 1080p, 60Hz monitor. The newer Freesync and G-sync technologies produce better quality images, but are costly. Choose what specs fit your budget, and remember that higher numbers usually yield increasingly insignificant returns in performance.

When choosing a display, think about what type of games you play. Competitive gamers should focus on refresh rate and aim for a 120Hz or 144Hz display to stay ahead of the competition, while role-playing and story gamers should prioritize a 4K resolution for the sharpest graphics.

6) Craft your ultimate hardware setup

Are you a console fan? A desktop dueler? A VR wiz? Regardless, your gaming room needs gaming hardware. Consider a couple of options before splurging on a powerhouse setup. Style and price are also important.

Before you purchase your dream console, or before hiding them behind a cupboard, take your entire room into account. Don’t ignore the console’s or computer’s aesthetic value, and instead work them into the room. A console can be a statement piece that sits on top of a desk or TV unit. A computer can sit prominently, blending into your room’s theme. To level up your gaming room, let your hardware breathe freely.

Numbers are king when it comes to computer performance vs price. Consoles are generally fixed in their performance capabilities, but desktops and laptops can be built with specific specifications in mind. Keep an eye out for these metrics when buying a computer:

RAM/DRAM: Measured in GB, this is where short-term device memory is kept and determines how quickly a computer can function performing multiple tasks. A higher amount of RAM, e.g. 32GB, means that a computer can run multiple demanding tasks at once without reduced performance.

• Storage: Think of this as long-term memory for your computer. Usually, a computer will have at least 256GB of storage.

• Central Processing Unit (CPU): CPUs are made up of chips consisting of multiple cores that process most everything that runs your computer. Keep in mind that they can’t run anything on their own, and require quality RAM and storage to operate. Their power is measured in gigahertz (GHz).

• Graphics Processing Unit (GPU): The GPU works in tandem with the CPU to accelerate computer graphics workloads. GPUs can either be built into a computer with the CPU or exist separately, allowing for customization.

• Cooling capabilities: Demanding workloads result in the computer generating heat. Too much heat will reduce performance and can cause damage. There are a few ways to cool a computer, but the most common are air and liquid coolers.

In general, shoot for middle-of-the-road hardware. That is, unless you want to spend thousands of extra dollars to experience the pinnacle of performance and style. Pre-built computers are more expensive but more convenient. If you have the ability, customize your gaming computer to your heart’s content.

A budget of around $2800 is sufficient for purchasing a setup capable of playing any game and can accommodate streaming, VR, and video editing. For the ultimate gaming experience, consider a $4000+ RTX 3090 powered system. $1800 will provide the full gaming experience at a lower cost, although with reduced graphics capabilities.

7) Decide on a quality sound system

The audio quality that comes directly from a TV or laptop is generally poor. Adding external speakers will improve your audio exponentially. It adds dimensions to your sound that would otherwise be lost. Let’s look into some popular speaker styles.

• Soundbars: Soundbars are the minimalist, stylish choice. The trade-off here is looks and price for sound quality relative to more traditional speaker styles. These fit easily into any gaming room.

• Bookshelf speakers: These can be used with soundbars as an addition, or can be their own system. These typically come with more than two speakers and can provide quality surround sound. They can be rigged to provide a large gaming room with resonant sound.

• Floorstanding speakers: These are usually large and expensive speakers with a powerful, full sound. They are heavy and obtuse, the opposite of soundbars.

Get Bluetooth speakers if possible for versatility, and try to coordinate the speaker style with your gaming room style. Many speakers have the ability to light up and can be custom-built if you’re willing to spend the extra money. 

8) Add soundproofing to your gaming room

Gaming is loud – it’s preferable that way – but you don’t want to get distracted or distract others in your home. Because of this, it’s a good idea to add soundproofing to your gaming room. Many materials and objects provide some soundproofing, but in general, it boils down to five strategies:

• Soundproof insulation

• Dampening seals

• Wall panels

• Rugs/carpeting/drapes

• Soundproof paint

If you have the budget for it, include a mix of soundproof paint, thick doors, and custom panels to seamlessly blend strong soundproofing and interesting visuals into your gaming room. Panels and full-wall systems not only help with acoustics but also protect your walls from hits and impacts, and can be customized to your specifications. If you’re on a tighter budget, apply dampening seals on the cracks around your door/s and window/s and use a thick rug. After applying the soundproofing, this space can also double as a podcast space or music studio for you or anyone else in your home.

Whether it’s a basement or a bedroom, the right soundproofing is critically important for a gaming room. Soundproofing needs to serve two purposes: giving you the best possible audio quality inside the room while limiting noise emitting outside. Soundproof panels are a great option because they can be made from recycled materials and are easy to install. – SONOpan, soundproofing and wall modification experts.

9) Stock up on gaming room accessories

Who doesn’t like accessories? Customize your room to your heart’s content with a headset, gaming mouse, mechanical keyboard, figurines, microphones, charging ports, a gaming mouse pad, or whatever else you can think of. If you’re a streamer, make sure to grab a webcam as well. A pair of headphones can elevate any gaming room. To keep things organized, add a sleek and functional headphone stand to display your gaming headset when not in use. If you’re on a budget, just get what accessories are necessary. Anything that costs more than $150 is marginally better than a cheaper option. 

It’s all about the experience, and equipment is key. To help make you the best gamer you can be, you’ll want to find a lightweight mouse that fits your hand perfectly, a fast keyboard so you can make the right plays, and a quality headset to hear subtle sounds.

10) Incorporate lighting 

It’s time to spruce up your room and transform your space with home lighting. We aren’t talking about simple lamps and fluorescents. We’re talking about strip lighting, Bluetooth lightbulbs, backlights, custom-shaped panels, and hanging decals. Lighting can be the perfect addition to help create a gaming atmosphere. Correctly placed lighting not only creates a more aesthetically pleasing experience, it can help with eye strain too. Lighting may seem unnecessary, but it definitely adds to the aesthetic and quality of your room. These lights can also be synced up with your gaming computers, mouse, keyboard, and even headset to weave your entire room together into an RGB LED explosion.

Since all the suggested lighting uses LEDs, which consume less electricity, you’ll be able to save energy at home and avoid racking up your monthly bill. 

Although many people tend to game at night, sitting in the dark can cause headaches and eye strain. Using LED lights with a daylight color temperature can help prevent this. If you don’t want bright lights at all times, dimmable LED lights will allow you to adjust your game room aesthetic.

Your gaming room is your space – your home within your home. By following these 10 gaming room ideas, your room, big or small, will shine. Make it yours, regardless of budget. Above all, be sure to have fun with it.

How to Make Your Best Offer on a Home

Making the right offer is crucial when you have your eye on a home.  Offer too little, and you may get passed over for the next buyer. Offer too much, and you may need to reevaluate your budget for furnishings or upgrades. This can be one of the most challenging parts of buying a new property.  Want to make sure you have a strong offer at a price you can afford? Here’s when you might offer above, below and at the listing price.

• At List Price: A home that's within your budget, move-in ready and comes with all the amenities you want could be worth an offer at the listing price. But you'll want to make sure there's not much competition for the property.

• Below List Price: Does the home need serious work? If so, you may want to offer below the selling price. In this case, bidding less money could free up cash for future repairs and necessary upgrades. You can also try a lower offer if there are tons of homes listed in your area (but little demand for them). Get in touch to learn about the properties for sale in your desired neighborhood.

• Above List Price: You may want to go beyond listing price if you're in a particularly active market or you know you're up against several buyers. Together, we can determine what other homes in the area are going for, and we'll make sure your best offer aligns with those bids.

Ready for a new home (and don't want to overspend)? Reach out today, and we can begin looking for a property that's perfect for you and your family.

6 Mortgage Tips for Single Parents

If you’re a single parent, it’s arguably more challenging to buy a home than for those in a partnership with dual incomes. Yet it’s easy to see why so many single parents are eager to purchase a house. Beyond finding a perfect kitchen and playroom, owning a home is an integral part of building a healthy financial future. And while homeownership may seem like an increasingly out-of-reach dream for single moms and dads, buying a house is definitely an achievable reality for most folks. To help inform you on this journey, we reached out to experts for tips on how to land a great mortgage as a single parent.

1. Leverage benefits

When applying for a mortgage, be sure to include any alimony and child benefit payments you receive. The most significant leverage a single parent has against lenders is their benefits. As a borrower, it’s essential to establish the capability to pay. So highlighting the monetary amount received from child benefits, tax credits, and maintenance fees is important as all of these can be taken into account.

2. Remember the 25% rule

Single parents have to carry a mortgage by themselves. With that in mind, it’s wise to leave plenty of financial wiggle room when shopping for a home. (An affordability calculator can help you determine what monthly payments you can swing.) As a single parent, there are more ‘what ifs’ to worry about, so it’s important to give the budget breathing room for emergencies and extra child care costs. They should aim for the monthly mortgage—including taxes and insurance—to be around 25% of their income. This way, there is enough to cover house costs, child costs, and still reach savings goals, such as saving for retirement and college.

3. Make a significant down payment if possible

No matter who you are or your financial and life situation, making a substantial down payment on a house will pay off. Getting a good mortgage rate can be a challenge for a single person. Making a big down payment will not only improve their chances of getting a good lender but also getting a better deal on the mortgage. It will also lower their monthly payments moving forward. Also to add, having a good credit score (740-plus is considered optimal) will improve the odds of getting a reasonable mortgage rate, because good credit lets lenders know you can keep up with financial commitments.

4. Consider specialty loans or down payment assistance

Can’t swing a large down payment? That’s OK. As a single parent, there is an opportunity to maybe be able to qualify for loans that require much less than the standard 20% down payment. A conforming, aka conventional, loan may only require a down payment as low as 3%, with a mortgage insurance add-on. One of the best loans for single parents is from the United States Department of Agriculture. The USDA loans are particularly helpful because most feature low-interest rates and do not require a down payment. The catch? You have to ensure that the property is within the USDA-eligible area. It also requires you to pay a mortgage insurance premium upfront, but it’s significantly lower than many other premiums.

And if you’re a teacher, firefighter, EMT, or member of law enforcement. the Good Neighbor Next Door program can get you up to 50% off on a foreclosed home.

5. Look for local loans

No matter what type of loan they ultimately try to secure, try to find a local lender. Working with a mortgage professional who is local to their market can be a huge asset. There are so many online platforms offering seemingly great deals, but that utilize loan officers out of the area or in call centers that may be completely out of the market. This can make sorting out market-specific details very challenging.

6. Beware of adjustable rates and multiple applications

The Federal Reserve may hike interest rates soon, so getting a mortgage with a fixed rate is critical. A 30-year fixed mortgage will allow a single person with kids to accurately forecast their monthly expenses. They should also watch out for prepayment penalties. These are penalties the lender would charge for selling the home within a set period of time. And beware of applying for multiple mortgages with different companies in a quest for the best offer. Each time you apply, they pull your credit, which reduces your credit score.

Major Household Dangers for Cats and Dogs

All pet parents want to keep their fur babies safe. So they may be shocked to learn their home can be a minefield of potential hazards that can cause severe harm or even death for their feline and canine family members. Cats and dogs are curious animals and tend to get into things, so nothing is foolproof. But there are some easy precautions that you can take to make it less likely that they will find something that they shouldn’t.

Most people know to keep chocolate hidden away from their pooches—it can be toxic to dogs and the APCC (Animal Poison Control Center) handles about 76 cases of chocolate exposure per day. But there’s a host of seemingly innocent items in your home that cause harm. In 2020 alone, the APCC helped more than 370,500 animals. So here’s what to keep out of paws’ reach and information on what to do if your pet is accidentally exposed to a toxin.

Crucial poison information

First things first: If you suspect your pet has ingested any poisonous substances, contact your veterinarian or call APCC’s hotline at 888-426-4435 immediately. You’ll need to provide your pet’s breed, age, weight, and health history, as well as what symptoms the animal is exhibiting. Symptoms of toxicity can vary depending on the hazard, amount consumed, size, and animal species.

Signs you may notice if your pet ingests something poisonous may be stomach upset, loss of coordination, increased or decreased urination, and seizures. All poison exposures and items cause different signs, but these are most commonly observed while others are more internal. Your vet or the APCC will ask about the product package, the strength of ingredients, and the amount your pet was exposed to, so having the product close at hand when you call is always a plus.

Danger No. 1: Human medicine

Over-the-counter medications such as ibuprofen, acetaminophen, vitamins, and supplements ranked as the top toxins in 2020 for the third year in a row, making up about 17% of APCC’s total case volume. Take all medications behind a closed door. Typically, it is recommended to take them in the bathroom with the bathroom door closed. That way if the pill is dropped, there  will be time to search for it without having to worry about your pet finding it first. Other medications to keep locked up include antidepressants, anticonvulsants, and prescriptions.

Danger No. 2: Edible hazards

Human foods made up 13% of 2020’s total toxicity cases at APCC, with most calls about grapes, raisins, xylitol (a sugar substitute), onions, garlic, protein powder, and snack bars. Yeast dough is another danger. When eaten, yeast can rise in a pet’s moist, warm stomach and cause a dangerous gas accumulation. Beyond being painful, this may result in a bloated stomach or even a twisted stomach, known as gastric dilatation-volvulus, a serious medical emergency. In addition, the yeast can become fermented, thereby producing alcohol within the stomach that can be absorbed into the bloodstream.

And of course, there’s chocolate. Chocolate, coffee, and caffeine all contain substances called methylxanthines. These compounds are stimulants. When ingested by pets, methylxanthines can cause vomiting and diarrhea, panting, excessive thirst and urination, hyperactivity, abnormal heart rhythm, tremors, seizures, and even death. Other edible dangers to keep away from your pets include alcohol, avocado, leeks, chives, and macadamia nuts.

Danger No. 3: Non-Edible hazards

Most homeowners have toxic items lying around their garage and home. Think items such as antifreeze, insecticides and pesticides, pool chemicals, and lawn fertilizer—all of which can be a significant hazard to your pets. Keep all pesticides and cleaners in high cabinets fortified with a childproof lock. Be aware that childproof rat poison containers are not pet-proof and that dogs especially can and will chew into them. Additionally, mice and rats will move blocks of rodent poisons. So they can end up in areas that are accessible to pets, even if they weren’t placed in areas that pets can get into initially. Non-edible items also include personal care products. Keep toothpaste, sunscreen, hand sanitizer, and fabric softener sheets out of snout’s reach.

Danger No. 4: Plants and flowers

Consumption of plants and flowers inside and outside the home may cause vomiting and gastrointestinal upset for dogs and cats. The APCC received 9,000 more calls in 2020 than the previous year for pet plant consumption. All plants and flowers should be kept out of reach from your pet to avoid broken glass or pottery, giving them access to potentially contaminated water. And eating that actual plant or flower, which could cause stomach upset or even be toxic. Instead, feature nontoxic plants in your home such as African violets, bamboo, roses, or spider plants.

Danger No. 5: Household hazards

Holiday decorations also present a danger to our furry friends. Puppies and inquisitive dogs can chew on electric cords, putting them at risk of serious burns or electric shock. Pet-proof your home just as you would childproof it for a toddler. It is  also recommended to tour the house at your pet’s level to spot and remove any potential temptations from their view.

What is a reverse mortgage?

A reverse mortgage is a loan based on the current paid-up value or equity in your home. Instead of making a monthly mortgage payment, your lender can use your equity to pay you a set monthly amount, provide a credit line for you to draw upon as needs arise, or pay out a lump sum to you. While gaining access to this money sounds great, it’s essential to understand how a reverse mortgage works to avoid any pitfalls.

How does a reverse mortgage work?

When you have a regular mortgage, you pay the lender every month so you can eventually own your home outright. With a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages use part of the equity in your home and convert it into payments to you. You do not need to pay back this loan until you move, sell the home, or pass away. When you (or your heirs) sell the home, the reverse mortgage loan balance is deducted from the proceeds of the sale. Any balance remaining from sale proceeds reverts to you or your heirs.

What can you pay for with a reverse mortgage? 

Here is a shortlist of expenses you can pay for with funds from a reverse mortgage:

• Medical debt

• Living expenses

• Debt consolidation

• Home improvements

• College tuition

• Another home purchase

• Or, you can use it as supplemental income

There are no stated constraints for how you use the money. But that doesn’t mean you should run right out and get one. Be sure to read the pros and cons to understand if this financial tool makes sense for your situation.

How do I qualify for a reverse mortgage?

Prepare to shop around for the right type of reverse mortgage to suit your situation. If you meet all of these qualifications, a reverse mortgage might meet your needs: 

• The primary loan holder must be age 62 or older – your spouse may be younger. 

• You must own your home outright or have just one mortgage which you are the borrower. 

• You’ll be required to pay off the existing mortgage using the proceeds from your reverse mortgage. 

• The home must be your primary residence.

• You must be current on all property taxes, homeowners’ insurance, and other mandatory legal obligations (like HOA dues).

• You must attend a consumer information class led by a HUD-approved counselor.

• Your home must be maintained and in good condition. 

• The home must be a single-family home, condo, townhouse, manufactured home built after June 1976, or a multi-unit property with up to four units.

There are 3 reverse mortgage types

• Single-purpose reverse mortgages: These are offered by some state and local government agencies and nonprofits. For a single-purpose reverse mortgage, the lender specifies how loan proceeds must be spent. For example, you may only be able to use the funds for property taxes or home repairs. This is the least expensive type of reverse mortgage, and low and moderate-income homeowners can often qualify.

• Home Equity Conversion Mortgages (HECMs): HECMs are reverse mortgages backed by the Department of Housing and Urban Development (HUD). You can use proceeds from a HECM for any purpose. This type of loan will be more expensive than a single-purpose reverse mortgage or traditional home loan, including high closing costs. If you plan to stay in your home for a long time, the upfront costs are less of an issue. 

• Proprietary reverse mortgages: These loans are offered by private lenders. You may be able to get a larger loan from a private lender if you own a high-value home over $500,000. These loans are more expensive than single-use loans and similar to HECMs. 

How much money can you get from a reverse mortgage?

The amount of money you can access from a reverse mortgage will vary with the amount of equity you have in your home, your age, the home’s current market value, current interest rates, and the specific type of reverse mortgage. If you have another loan, lien, or outstanding balance on your home equity line of credit, you will be required to pay the outstanding balances first with any funds you received from a reverse mortgage. The obligation includes any property tax liens, or contractor, or other private liens. 

How much does a reverse mortgage cost?

The costs and terms for a single-purpose reverse mortgage and a proprietary reverse mortgage can vary. You’ll want to shop around with different agencies and mortgage lenders to find the most favorable terms. Costs for HECM loans are well-documented since the government backs such loans. However, you will not need to pay loan costs out of pocket because the costs can be covered by loan proceeds, which will reduce the net loan amount available for expenses. 

HECM costs include: 

• Mortgage Insurance Premium (MIP): This mortgage insurance guarantees that you will receive expected loan advances. You can finance the MIP as part of your loan. Initially, you will be charged 2% of the loan amount for MIP at closing. This is followed by an annual MIP equal to 0.5% of the mortgage balance over the loan’s life.

• Third-party Charges: Third-party costs include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks, and other fees. These costs are paid at closing.

• Origination Fee: Like any mortgage, the lender gets paid to process your loan. A lender can charge the greater of 2% of the first $200,000 of your home’s value + 1% of the amount over $200,000 or $2,500. All origination fees are capped at $6,000.

• Servicing Fee: Service fees over the term of the loan cover services that include sending the account statements to you, paying property taxes and insurance on your behalf, and disbursing loan proceeds. If the loan has an annual adjusted interest rate or a fixed interest rate, the service fee caps $30 per month. If your interest rate adjusts monthly, the monthly service fee caps at $35. 

At loan closing, the lender deducts the first servicing fee from your available funds and then adds each monthly servicing fee to your loan balance. Alternatively, lenders may include the servicing fee in the mortgage interest rate by charging a higher rate. 

Reverse mortgage pros and cons

Pros: 

• A reverse mortgage can give you financial options and additional income during retirement.

• If the primary loan holder passes away, the spouse can stay in the house and continue to receive payments from the loan.  

• You don’t have to make monthly mortgage payments.

• Depending on the type of reverse mortgage, your funds can be used for any expense. 

• It can be used as a way to stop or prevent foreclosure and loss of the home.

Cons: 

• You will owe more over time due to interest on the loan.

• You could lose your home if you don’t maintain payments for property taxes and insurance. 

• You reduce the equity in your home because you are, in effect, lending it to yourself. 

• The upfront cost of a reverse mortgage can be thousands of dollars. 

• Your heirs may not be able to keep the home if they can’t afford to pay off the loan.

Is a reverse mortgage a good idea? 

While a reverse mortgage involves certain complications, it can be an excellent way to supplement your income during retirement, pay for medical expenses, or home improvements that allow you to age in place. As with any loan, it makes good sense to shop around for the best terms and fees. Guidance from a HECM counselor can help you make the best choice

How to get over losing out on a home

You had such big dreams for the two of you. You were ready to make the big commitment. You thought you’d grow old together. But then your offer on the house didn’t go through. You lost out. You won’t be buying that perfect-for-you place. You won’t be cooking in the all-white modern farmhouse-style kitchen or planting roses in the lushly sodded and fenced yard. You’re no better off than when you started, in the same digs you wanted to leave last year. When you lose out on a house you wanted, the heartbreak is real. It’s the real estate version of being ghosted right when you started scouting honeymoon spots. Here is how to deal with heartache—and all of its many symptoms—when the house that was supposed to be “it” turns out to be just another listing.

Symptom: Your head (and friends) know it was “just” a house, but your heart huuuuuurts.

Solution: Go and feel all your feels.

Don’t hold that nasty stuff in. Don’t pretend it’s no big deal. Let yourself feel everything—the disappointment, frustration, and the empty feeling of wondering what might have been. Cry it out. Scream it out. Find a punching bag and take it out. You’re mourning a lost dream. It’s legit. It’s OK to lie in a fetal position and tearfully binge watch House Hunters. Or The Hulk. You do you.

Symptom: Can’t. Stop. Refreshing. Listing.

Solution: Take some me time.

Do the one thing you wanted to do in your relationship, but didn’t. When you were house hunting, did you save every spare dollar for your down payment? And never leave town in case you missed a great listing or the chance to make an offer? It’s time for a getaway. Treat yourself. You will get a house that’s perfect for you at some point, but you need to get out of your head for a minute. Remember: when one door closes, another opens—and it’ll stay propped until you’re back from your weekend away with a few mojitos.

Symptom: You accidentally keep driving by.

Solution: Stay away from reminders.

Don’t drive by the house to see if it’s marked pending or if a moving van is in the driveway. Don’t even drive by the neighborhood or that awesome little coffee shop that was just down the street where you had already imagined yourself lounging on weekends with an espresso con panna. And take it out of your Favorites on Trulia so you don’t see it every time you log on. You don’t want to obsess over what might have been.

Symptom: You realize life before the house dream…kind of sucked.

Solution: Restock your life with people

Let’s be real for a minute and recognize that it was just one house (too soon?). Sometimes we attach ourselves to any dream that feels like a needed change. So change your world in another way. Call your friends. Reconnect with old ones. Meet (gasp!) new people. Step outside of your comfort zone and try meeting a new friend at the gym or a painting class. 

Symptom: Real talk? You regret ever seeing that damn place.

Solution: Learn from the heartache.

Anger’s fine. Totally normal. Try to see an ended relationship as a lesson, not a failure. What worked and what didn’t with that home buying process? What might help you have a better shot at success next time? Be honest. Did you go too low? Can you live with two bedrooms instead of three? Can you really afford that hot neighborhood, or are you trying to punch above your weight? It could be time to look for different traits in a house so the two of you will succeed as a couple.

Symptom: You think it’s time to get back in the house hunting game. But you also can’t even.

Solution: Get back out there.

When you’re ready, know that it’s okay to test the waters again. When you really start looking at just how many homes are for sale, you might start wondering how you got so fixated on just one anyway. Whether it’s setting up a search on a home search site or with your trusted agent for houses in that perfect neighborhood, or dropping by an open house you spotted online, get back in the game. Not every listing has to be perfect for you to check it out. Just look. Keep dreaming about the place you want, and “the one” will eventually open the door.