YourHome
FEATURED PROPERTY
JUNE / JULY 2016
T H E H E A R T L A N D ’ S L E A D I N G R E A L E S TAT E & H O M E L I V I N G M A G A Z I N E
COUNTRY CLUB ESTATES Beautiful custom built home on 3.7 Acres. 4 BR, 3.5 BA with salt water pool and hot tub. Outstanding amenities. LEARN MORE, PAGE 8
CHAT
SPACE MAKE YOUR KITCHEN A COMFY PLACE TO GATHER
INSIDE THIS MONTH’S EDITION: n Great Imposters! 5 n Get Best Offer, 7 n Affordable Mortgage, 10
C H E C K O U T L I S T I N G S & I N F O R M AT I O N F R O M T H E S E G R E AT A D V E R T I S E R S : C O L D W E L L B A N K E R , M A R K C A M P B E L L & A S S O C I AT E S , M C C L U S K E Y & A S S O C I AT E S , T E X A S B A N K , T E X A S R E A LT Y, M I L L S C O U N T Y S TAT E B A N K , T E X A S G O L D S TA R R E A L E S TAT E , T O O T I E K E L LY R E A L E S TAT E , A C M E B R I C K & T I L E , B R O W N C O U N T Y S E R V I C E D I R E C T O R Y
2
Heartland Your Home
Sunday, June 19, 2016
ADVERTISERS REAL ESTATE
Mark Campbell & Associates - Coldwell Banker McCluskey & Associates Texas Goldstar Real Estate Texas Realty Tootie Kelly Real Estate
LENDING INSTITUTIONS
Mills County State Bank TexasBank
MISC SERVICES
ACME Brick & Tile Brown County Service Directory
3 6 8 4 12 7 10 7 11
A publication of the
Brownwood BULLETI BULLETIn Your Community u Your Story u Delivered Your Way
Serving the Heart of Texas Since 1886
For questions or to advertise please call the Brownwood Bulletin at 325-646-2541 or come by the office at 700 Carnegie, Brownwood. NOTICE All Rental and Real Estate Ads are subject to the Fair Housing Act which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, or family status or national origin.
Brown County home sales decrease by 9%, home prices rise in May 2016 Heartland Association of REALTORS¨ releases real estate statistics for May 2016 Brownwood, Texas Ð June 07, 2016Ð Brown County home sales decreased 9 percent to 29 sales in May. The median home price increased 18% over last year, according to the May 2016 Brown County housing market report released today by the Heartland Association of REALTORS¨ . According to the report, 29 homes were sold in Brown County in May 2016, a 9 percent decrease from the year prior. The median price for Brown County homes increased 18 percent year-over-year to $123,750 during the same time frame. Brown CountyÕ s monthly housing inventory* was 9.7 months in May of 2016, a decrease of 2.2 months from May 2015. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced. Homes spent an average of 129
days on the market in May 2016, 86 days less than May 2015. Additionally, active listings were down to 336, a decrease of 3% from the same time last year. With a growing economy, booming population and high quality of life, Texas is a great place to live, work and do business. As such, the demand for Texas real estate remains strong and enduring. Texas REALTORS¨ continue to work daily to protect the rights of private-property owners, keep homeownership affordable, and promote public policies that benefit homeowners. * The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months.
Vann Stanford, President Heartland Association of Realtors
Sunday, June 19, 2016
Heartland Your Home
3
Keep Your Home Purchase on Track You’ve found your dream home. Make sure missteps don’t prevent a successful closing. G.M. Filisko Houselogic.com
A
home purchase isnÕ t complete until you make it to the closing. Until then, the transaction can fall apart for many reasons. Here are five tips for avoiding mistakes that cause a home sale to crater.
1. Be truthful on your mortgage application.
You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.
2. Hold off on big purchases.
Lenders double-check buyersÕ credit right before the closing to be sure their financial condition
hasnÕ t weakened. If youÕ ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan. Although itÕ s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.
3. Keep your job.
The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.
4. Meet contingencies.
If your contract requires you to do something before the sale, do it. If youÕ re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, donÕ t stall. If you have 10
days to get a home inspection, call the inspector immediately.
5. Consider deadlines immovable. Get your funds together a week or so before the closing, so you donÕ t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct. G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. A frequent contributor to many national publications including Bankrate.com, REALTOR¨ Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
COLDWELL BANKER
Mark Campbell & Associates 1900 Austin Avenue Brownwood, TX 76801
Office: 325-646-1547
Buying or Selling - Land, Home or Business contact Coldwell Banker for your real estate needs: Mark Campbell ........325-642-5416 Royce Blackburn ....325-642-2093 Terry Blagg..............325-642-2553 Kimon Faubion .......325-998-0227 Jeff Hibbs ................325-642-3559 Don Holland ............325-998-2058 Donna Howey ..........325-998-0488 Nesa Morelock ........325-642-4932 Jennifer Newton ......325-642-2100 Hunter Stanford ......817-649-9822 Vann Stanford .........325-642-2088 Gary Twiford ...........325-642-1179 Brad Wells ...............325-642-2489 Sheri Wells ..............325-642-5994 Sue Wells.................325-642-8353 Stephen Young .......325-647-2418
4
Heartland Your Home
Sunday, June 19, 2016
Sunday, June 19, 2016
Heartland Your Home
5
The Great Imposters: Native Plants that Can Impersonate Our Landscape Favorites Contributed by Gayle McNeill with the Brownwood Garden Club When we hear the words impersonator, imposter or fake, we presume that the object is less desirable, lower quality or has a shorter life span. Well when it comes to native plants impersonating the flora we normally use, nothing could be farther from the truth! Native plants for our region are tougher, more drought tolerant and can accomplish the same aesthetic and functional goals as non-native plants in the landscape, with much less maintenance and fuss. So who are these great imposters? The plant known as Algerita, Agarita or Texas Barberry is a great substitute for traditional barberries, hollies and privet. It grows in both shade and full sun, is extremely drought tolerant, and almost impossible to kill. Sporting white or yellow flowers in the spring, it produces berries loved by birds and even jelly makers. Tired of your liriope and monkey grass dying out over the winter or being eaten by grasshoppers? Try using Mexican Feather Grass instead. This foot high grass is crowned by feathery cream blooms atop apple green fine textured grass blades. It is an amazing ground cover that hides unsightly objects such as clean outs and it gets thicker by reseeding, year after year. Best of all, neither grasshoppers nor deer will be chomping it to the ground. An alternative to Asiatic Jasmine is the beautiful Virginia Creeper. Although not an
evergreen, the brilliant crimson to maroon fall color more than makes up for its winter disappearing act. It is also easier to keep under control and tidier than jasmine. Over enthusiastic shoots can be broken off by hand as opposed to having to use the weed wacker or clippers. Frog Fruit is another alternative to non-native groundcovers, no matter how whimsical its name. Just recently available at nurseries, this groundcover spreads by runners and will grow in shade to part sun and is semi-evergreen in Brownwood. It has white to purple flowers that attract butterflies and grows naturally low to the ground-- tolerating drought to wet conditions. Ornamental trees are lovely, but the yearly branch lopping and sucker pruning can get tiresome at best. Texas Mountain Laurel, Anacacho Orchid Tree, Mexican Plum, Texas Redbud, Mexican Buckeye and Desert Willow are wonderful alternatives that do not require pruning, except to reshape. All of these native ornamental trees provide lovely blooms for a fraction of the water required by the non-native flowering trees. Texas Mountain Laurel prefers the shady to part shade areas in your landscape and provides evergreen foliage and fragrant, cascading purple blooms in the spring. Anacacho Orchid Tree has delicate roundish leaves and a slow growth habit that keeps it well behaved over time. Airy and fragrant, the white to pink blooms arrive in the late spring. It can be pruned as either a large shrub or
limbed up as a tree. Mexican Plum is a great substitute for ornamental Cherry trees. Sporting light pink to white blooms, the Mexican Plum also has the striated, shimmering gray bark like the cherry tree. Texas and Mexican Redbud are both drought tolerant versions of the common Eastern Redbud. Both have smaller leaves that are shiny and thick to prevent water loss and they donÕ t wilt under our hot summer sun like their eastern cousin. They both still provide the brilliant purple blooms that herald the beginning of spring. Mexican Buckeye is also an early blooming large shrub or understory tree that does well in the dry shady areas that are a challenge in our landscape. Same brilliant purple blooms as the redbuds, but with the added bonus of foliage that turns brilliant yellow in the fall. Desert willows are native to the arroyos of west Texas, so dry weather is no challenge for them. There are several varieties available with bicolor orchid-like blooms ranging from maroon to a pale pink. Given too much water, they become lanky and unsightly, so donÕ t spoil this tree with too much water! Examples of healthy Desert Willows can be seen at the intersection of Hwy 279 and Hwy 377 and along the sides of the overpass on 377 south. Love your ligustrums and Red-tip photinias, but have found they have grown too large for their spaces? These non-native evergreen shrubs are tough to keep in control and the constant pruning can get tiresome. Evergreen Sumac shrubs can
replace these in part shade to full sun conditions and have the same glossy leaves and medium texture. They have small white blooms and red berries and will grow slowly in shadier locations. It is best to pay a little more for the larger size upon planting, due to their slow growth. You can see these in large pots on the side of the Texas Bank location on Fisk Street. They tolerate the reflective heat, but do better if they have a little relief from the direct sun. Another finer textured shrub to small tree that can replace these landscape mainstays is standard or weeping yaupon. Standard Yaupons look best in hedges or in screens where hard pruning is not required. Hard pruning stunts their trunk growth and you can end up with a gnarled mess inside the canopy. Weeping Yaupons are great screening plants as their foliage grows downward, giving them a soft billowy appearance. DonÕ t be fooled by their shape, though, they are tough as nails and will stop even the most persistent planting bed perpetrator! Native plants are often limited for use in xeriscape style landscapes, but their uses in traditional design as drought-tolerant and lower maintenance alternatives is endless. Not only do they require less trimming and water, they resist our insect and deer pests and provide food for birds, butterflies and other wildlife. LetÕ s think outside the box, or in this case, the pot, when it comes to landscape plantsÑÒ The Great ImpostersÓ may just be the pick-me-up your landscape needs.
PLANT LIST Algerita, Agarita or Texas Barberry - Mahonia trifoliolata
Mexican Feather Grass Nassella or Stipa tenuissima
Virginia Creeper -
Frog Fruit - Phyla nodiflora
Texas Mountain Laurel Sophora secundiflora
Anacacho Orchid Tree Bauhinia lunarioides
Mexican Plum Prunus mexicana
Texas or Mexican Redbud - Cercis texana or mexicana
Mexican Buckeye - Ungnadia speciosa
Desert Willow - Chilopsis linearis
Evergreen Sumac Rhus virens
Standard Yaupon - Ilex vomitoria
Parthenocissus quinquefolia
Weeping Yaupon Ilex vomitoria pendula
Photos found at the Lady Bird Johnson Wildflower Center website: wildflower.org
6
Heartland Your Home
Sunday, June 19, 2016
Luann McCluskey,
BUYING OR SELLING?
GRI, Broker/Owner
325-642-2310
Call the McCluskey team today. We are low on inventory and we have buyers!! We will go “the extra mile” for you.
1515 Austin Ave., Brownwood, Tx 76801
325-643-3200 www.brownwoodproperties.com
Service with Integrity since 1999
1420 BRADY AVE.
COMMERCIAL BUILDING
REDUCED TO $18,500 Previously operated as restaurant. Sold AS—IS condition.
308 W. PIONEER— $43,000 RISING STAR
Remodeled 2BD on large corner lot with metal roof. Working water well, 2 storage/shop bldgs. Call Taylor for appt.!
Taylor Isom,
Marc Followwell REALTOR ®
325-200-2581
REALTOR ®
817-933-2153
1201 AVE. A
$39,900
2BD on large corner lot. Walking distance to Coggin Elementary & Brownwood Intermediate School. Call Taylor!
300 FT. WATERFRONT LAKE BROWNWOOD— NICE 4 BEDROOM DW ON 16 ACRES
2 shops, RV parking —Owner will consider owner finance or trade.
7525 FM 2125
9010 MESA VIEW— $243,900
2-story lakeview home with 3310SF, 4BD/3BTH, granite countertops, open floor plan, laminate flooring, huge balcony overlooks beautiful Lake Brownwood. Call Marc!
Cash buyers only! Call Luann!
711 BELLE PLAIN— REDUCED TO $195,000!!
Commercial building in great location on approximately 1.5 acres. Previously operated as Smith Roofing Company. Located directly behind Big Country Ford Lincoln Dealership & Underwood's Barbeque. Features reception area, 5 offices, 4 bathrooms, kitchen-break room, 2 large workshops, 2 open yards with covered parking. Lot adjacent for sale...see below. Call Luann.
709 W. COMMERCE—$147,000
Antique & jewelry store family owned for over 42 years. Location..location..location! Property totally fenced with lots of parking.
Seller wants an offer! Call Luann today!! Let’s make a deal! 2201 VINE—67,900
This home sits on a large treecovered corner lot. Needs a little TLC. Ready for a new owner!! Call Taylor for appt.
NEAR HIDEOUT GOLF COURSE
——————— 703 W. AUSTIN AVE-$225,000 AUSTIN AVE. AUTO SALES Sale includes business, land, improvements, inventory, and customer base. Lighted parking with spaces for 50 vehicles. Large shop with 4 bay doors currently used for auto detailing. Great location with high traffic count! Call Luann for details!
7420 Eagle Point—$84,900 This lakefront lot is .6 ac. & is surrounded by beautiful homes. Great building site. Call Marc.
—————————
454 Feather Bay—-$26,000 Nice wooded lot you can build a home on; lot is situated between the lake & golf course. Beautiful views of the lake with some clearing. Call Taylor!! Both lots include amenities i.e. free golf, access to restaurant, clubhouse, and pool.
PENDING
8145 CR 550 1610 Dublin 102 Autumn 510 Longhorn
4409 EDGEWOOD $74,900
9601 HWY. 279 219,900
2BD/1BTH brick home on corner lot, screened in porch, located in subdivision across from Section Hand Restaurant. Call Marc!
HOME ON 10 ACRES
Very spacious 3BD/2BTH country home on 10 acres near Lake Brownwood with 2300+SF. Home sits secluded back off highway so very private! 1450 sq. ft. metal barn Great place for your livestock or 4-H projects. Call Luann for appt.
WALKING DISTANCE TO COGGIN PARK!!
FEATHERBAY LAKE LOTS
SOLD
1215 Ave. A 1814 11th 113 Bowie Circle 412 W. Mayes
440 Bluebonnet -
681 CR 611—
2 LAKE HOUSES ON 3 LOTS CAN BE SOLD AS PACKAGE DEAL…OR CAN BE SOLD SEPARATELY
CASON COVE AREA Unique rock home with over 2200 sq.ft. Backyard features 3 decks overlooking lake. Shop sits on .37 acre totally fenced across the road. Call Luann for appt.
$134,900
Sits on 3 consecutive lake lots. 0.775 acres with 2 separate houses! These lots come with 4 RV hook ups. Call Marc to view this property!
$372,000
RUSTY ANCHOR RESTAURANT -
$75,000
3071 HARBOR DR
LAKE BROWNWOOD Our lake is full...great time to buy. Complete with building, land & inventory…..just step in & take over! Sits on approximately .5 acre. Call Luann.
Sunday, June 19, 2016
6 Tips for Choosing the Best Offer for Your Home
Houselogic.com
YouÕ ve worked hard to get your home ready for sale and to price it properly. With any luck, offers will come quickly. YouÕ ll need to review each carefully to determine its strengths and drawbacks and pick one to accept. HereÕ s a plan for evaluating offers.
1. Understand the process.
All offers are negotiable, as your agent will tell you. When you receive an offer, you can accept it, reject it, or respond by asking that terms be modified, which is called making a counteroffer.
2. Set baselines.
Decide in advance what terms are most important to you. For instance, if price is most important, you may need to be flexible on your closing date. Or if you want certainty that the transaction wonÕ t fall apart because the buyer canÕ t get a mortgage, require a prequalified or cash buyer.
3. Create an offer review process.
If you think your home will receive multiple offers, work with your agent to establish a time frame during which buyers must submit offers. That gives your agent time to market your home to as many potential buyers as possible, and you time to review all the offers you receive.
4. Don’t take offers personally.
Selling your home can be emotional. But itÕ s simply a business transaction, and you should treat it that way. If your agent tells you a
buyer complained that your kitchen is horribly outdated, justifying a lowball offer, donÕ t be offended. Consider it a sign the buyer is interested and understand that those comments are a negotiating tactic. Negotiate in kind.
goal of closing the sale?
6. Be creative.
If youÕ ve received an unacceptable offer through your agent, ask questions to determine whatÕ s most important to the buyer and see if you
Carefully evaluate all the terms of each offer. Price is important, but so are other terms. Is the buyer asking for property or fixtures — such as appliances, furniture, or window treatments Ñ to be included in the sale that you plan to take with you? Is the amount of earnest money the buyer proposes to deposit toward the downpayment sufficient? The lower the earnest money, the less painful it will be for the buyer to forfeit those funds by walking away from the purchase if problems arise. Have the buyers attach a prequalification or pre-approval letter, which means theyÕ ve already been approved for financing? Or does the offer include a financing or other contingency? If so, the buyers can walk away from the deal if they canÕ t get a mortgage, and theyÕ ll take their earnest money back, too. Are you comfortable with that uncertainty? Is the buyer asking you to make concessions, like covering some closing costs? Are you willing, and can you afford to do that? Does the buyerÕ s proposed closing date mesh with your timeline? With each factor, ask yourself: Is this a deal breaker, or can I compromise to achieve my ultimate
It is Really Coming Down Out There!
3.99
%
APR*
10 Year
FIXED RATE MORTGAGE
Take Advantage of this Limited Time Offer to: Enjoy one low fixed rate Get mortgage-free faster
Pay less interest Build equity quicker
Mills County State Bank M Where Service Makes the Difference C S B 1-800-285-2216 Goldthwaite 325-648-2216
NMLS# 442123
Early 325-646-0313
7
can meet that need. You may learn the buyer has to move quickly. That may allow you to stand firm on price but offer to close quickly. The key to successfully negotiating the sale is to remain flexible.
5. Review every term.
BR-00013284
G.M. Filisko
Heartland Your Home
Brownwood 325-646-1798
Hamilton 254-386-4461
Hico 254-796-4221
www.mcsbtexas.com
Member FDIC
*Annual Percentage Rate (APR) offer subject to change without notice and based on a first lien for an owner-occupied, single-family residence, maximum combined loan to value of 80%, a credit score of 700 or higher, and automatic payments from a checking account with MCSB. For a $100,000 loan at an interest rate of 3.899% (3.99% APR), the estimated monthly payment would be $1,007.90 for 120 months. Payments do not include amounts for taxes and insurance premiums and the actual total payment obligation may be greater. Subject to program qualifications and standard underwriting guidelines.
8
Heartland Your Home
Sunday, June 19, 2016
Sunday, June 19, 2016
Heartland Your Home
KITCHEN
9
PHOTOS: YOUTUBE /WIKIPEDIA
CHAT SPACE
Your kitchen is the place to gather Ð make it comfortable
By Melissa Erickson More Content Now
T
rite but true, the kitchen is the heart of the home. ItÕ s where we gather to connect, prepare meals and eat. It should not only reflect your personal taste but be inviting and comfortable, too. When it comes to a comfortable kitchen, Ò a couple of things come to mind,Ó said Diana Burton, designer with Drury Design Kitchen and Bath Studio in Glen Ellyn, Illinois. Ò First, lighting plays a huge role in making kitchens feel inviting. Good task lighting is essential, but dimmers allow for softer lighting for both family dining and entertaining. Second, comfortable seating in a table area and also at islands and peninsulas make people want to linger. A banquette, like a booth in a restaurant, can create an especially cozy and inviting spot for eating, doing homework or reading the Sunday
paper.Ó Up the comfort factor with chairs that have seat cushions and arms, Burton said. Kitchen countertops and tables can be convenient places to stash the stuff of your life, but all that disorganization creates chaos. Ò If mail, school papers, pantry items all have a home, that helps counters remain more clutter-free. No one wants to have to clear counter space at an island before they can sit down for a snack,Ó Burton said. Ò In most kitchens, the island or breakfast table serves multiple functions. ItÕ s not only a comfy place for family meals, itÕ s a spot to work on a school project or sort through the dayÕ s mail as well.Ó Little details that make a kitchen more user-friendly enhance the roomÕ s liveability. Ò Soft-close drawers and doors eliminate slamming, making for a quieter, more peaceful kitchen. Hidden roll-out waste and recycling cans keep kitchen tidy and inviting,
“Spaces featuring white painted cabinetry feel warmer with wood floors or even a wood island countertop.” Diana Burton
too,Ó Burton said. Opt for a sturdy bin that opens with a foot pedal for ease of use. Sore feet and backs make for an unhappy cook. Invest in cushioned mats in front of the sink, stove and countertops, said Daniel Bouzide, president of WellnessMats. Ò The kitchen is indeed the heart of the home. It is where friends and family gravitate, yet is often the room with the least seating and/or places to relax. As a result, people tend to stand or lean,Ó Bouzide said. WellnessMats are designed to provide Ò improved circulation, posture, balance and boosted energy
while offering proven relief from muscle pain and joint fatigue,Ó he said. The choice of finishes also lends warmth to kitchens. Ò Spaces featuring white painted cabinetry feel warmer with wood floors or even a wood island countertop,Ó Burton said. Ò Colorful accessories, window treatments and rugs add warmth as well, and nothing beats personal touches to make any space feel like home. Family photos, favorite cookbooks and mementos from vacations all add personality to the heart of the home,Ó she said.
10
Heartland Your Home
Sunday, June 19, 2016
4 Tips to Determine How Much Mortgage You Can Afford By knowing how much mortgage you can handle, you can ensure that homeownership will fit in your budget. G.M. Filisko
H
Houselogic.com
omeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget. Why not just take out the biggest mortgage a lender says you can have? Because your lender bases that number on a formula that doesnÕ t consider your current and future financial and personal goals. Think ahead to major life events
and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage? Consider those lifestyle issues as you check out these four methods for estimating the amount of mortgage you can afford.
1. Prepare a detailed budget.
The oldest rule of thumb says you can typically afford a home priced two to three times your gross income. So, if you earn $100,000, you can
NOW IS A GREAT TIME TO
D, BUY OR RE L I U FI B
RAY GARZA NMLS : 652275
GIVE US A CALL TODAY! 325.649.9254
WWW.TEXASBANK.COM
INSTITUTION NMLS: 539097
typically afford a home between $200,000 and $300,000. But thatÕ s not the best method because it doesnÕ t take into account your monthly expenses and debts. Those costs greatly influence how much you can afford. LetÕ s say you earn $100,000 a year but have $1,000 in monthly payments for student debt, car loans, and credit card minimum payments. You donÕ t have as much money to pay your mortgage as someone earning the same income with no debts. Better option: Prepare a family budget that tallies your ongoing monthly bills for everything Ñ credit cards, car and student loans, lunch at work, day care, date night, vacations, and savings. See whatÕ s left over to spend on homeownership costs, like your mortgage, property taxes, insurance, maintenance, utilities, and community association fees, if applicable.
2. Factor in your downpayment.
How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the homeÕ s cost, you may not have to get private mortgage insurance, which protects the lender if you default and costs hundreds each month. That leaves more money for your mortgage payment. The lower your downpayment, the higher the loan amount youÕ ll need to qualify for and the higher your monthly mortgage payment. But, if interest rates and/or home prices are rising and you wait to buy until you accumulate a bigger downpayment, you may end up paying more for your home.
3. Consider your overall debt.
Lenders generally follow the 43% rule. Your monthly mortgage payments covering your home loan principal, interest, taxes and
insurance, plus all your other bills, like car loans, utilities, and credit cards, shouldnÕ t exceed 43% of your gross annual income. HereÕ s an example of how the 43% calculation works for a homebuyer making $100,000 a year before taxes: 1. Your gross annual income is $100,000. 2. Multiply $100,000 by 43% to get $43,000 in annual income. 3. Divide $43,000 by 12 months to convert the annual 43% limit into a monthly upper limit of $3,583. 4. All your monthly bills including your potential mortgage canÕ t go above $3,583 per month. You might find a lender willing to give you a mortgage with a payment that goes above the 43% line, but consider carefully before you take it. Evidence from studies of mortgage loans suggest that borrowers who go over the limit are more likely to run into trouble making monthly payments, the Consumer Financial Protection Bureau warns.
4. Use your rent as a mortgage guide.
The tax benefits of homeownership generally allow you to afford a mortgage payment Ñ including taxes and insurance Ñ of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment. HereÕ s an example: If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership. However, if youÕ re struggling to keep up with your rent, buy a home that will give you the same payment rather than going up to a higher monthly payment. YouÕ ll have additional costs for homeownership that your landlord now covers, like property taxes and repairs. If thereÕ s no room in your budget for those extras, you could become financially stressed. Also consider whether or not youÕ ll itemize your deductions. If you take the standard deduction, you canÕ t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a Ò what ifÓ tax return, can help you see your tax situation more clearly. G.M. Filisko is an attorney and award-winning writer whoÕ s owned her own home for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR¨ Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
Sunday, June 19, 2016
11
Heartland Your Home
SERVICE DIRECTORY OF BROWN COUNTY Dennis & Virginia Sanderson ownerS
Sanderson Trailers
Texas’ Land & Home Owners Most Trusted Fence Company
• Buy • Sell • Trade
WEST TEXAS DISTRICT 432.213.2028 CENTRAL TEXAS DISTRICT 325.203.5019
325 643-3626 800 280-4125
866.95.FENCE
(33623)
948 Early Blvd. Early, TX 76802
FIND US ON FACEBOOK www.txfenceandwelding.com
Jason Dickey Manager
• Composition & Metal Roofing • Metal Buildings • Spray Foam Installation
CALL JOEY 325-642-6806
JS ConStruCtion 325-998-1580
Masonry - All Types: Rock, Brick, Block and Stuck-on Concrete
old & new ConstruCtion - All Types:
Framing, Remodeling, Doors and Windows and more. ‘Wood & Metal’ landsCaping - Trees, Shrubs, Sod, Dirt Work and more land Clearing - Brush Removal, Shredding, Tree Trimming & Mowing FarM & ranCh repair - Welding, All Fencing, Barns, Metal Buildings, Corrals, Septic and much more house leveling & Flooring All Types rooFing - Metal and Composition
Construction Farm & Ranch
Fencing • Pipe Fence Cattle Pens • Barns Metal Roofing
Mike Grelle
FrEE Estimates Senior Discounts
325-647-3838
What’s missing?
DNI Well Service
Pipe For Sale 23/8 and 27/8 #1 Tubing
Your Ad!
Downhole or Structural
325-642-2399
Get seen & get your products and services SOLD
OR
325-217-4982 BANGS, TX
Be a part of our directory that will publish each Sunday in the classified section of the Brownwood Bulletin and Heartland Trading Post
Call Trease or Staci today! 325-646-2541
BR-SPAD0324081143
HARDMAN Construction & Roofing
New & Used Trailers Parts & Repair
12
Heartland Your Home
Sunday, June 19, 2016