What’s In Your Mortgage Payment?

What’s In Your Mortgage Payment?

If you have never owned a home and had a mortgage, it can be a little confusing to see what makes up your monthly mortgage payment. Every lender has their own methods when it comes to collecting your monthly mortgage payment, but generally speaking the breakdown of a mortgage payment is pretty standard.
The first component of your mortgage payment is often referred to as P/I or Principal and Interest. The principal and interest component is simple to calculate and even the simplest of mortgage calculators will let you input the loan amount, term of the loan and interest rate and calculate the P/I payment over the term of the loan.
Generally speaking with most mortgage loans, the first payments you make will be mostly interest and the last few payments you make will be mostly principal.
The second component of your mortgage payment is often referred to as T or Taxes. Your property taxes are assessed by the county you live in and are typically collected as part of your mortgage payment by your lender who then pays your taxes on your behalf when they are due (typically twice each year). In some areas of the country, property taxes are high and in some they are low — but generally speaking your property taxes are paid into an escrow account at your lender and held there until paid.
The third component of your mortgage payment is I or Insurance. Insurance refers to your homeowners insurance. Like your taxes, it is common for your lender to have an escrow account set up for you for your insurance premiums. You pay 1/12th of the annual premium each month as part of your mortgage payment and your lender then pays your insurance company once each year.
Depending on how much money you put down as a down payment and what type of loan program you have, you may or may not have M/I or Mortgage Insurance. Mortgage insurance is different than Insurance. Mortgage insurance is paid by the borrower to the lender and the lender pays that to private MI companies who agree to pay the lender in the event the borrower defaults.

Mortgage Payment Breakdown: A Simple Example

Here is a simple example mortgage payment breakdown for a $200,000 loan at a 5% interest rate with a $1,200 annual property tax bill and a $1,200 annual insurance policy premium to insure the home with no mortgage insurance.
Principal / Interest = $1,074
Taxes = $100
Insurance = $100
Total PITI Payment = $1,274
What makes up your monthly mortgage payment?
P. I. T. I. and sometimes MI.


Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mark@themortgagemark.com

What to do about Google Plus…

What to do about Google Plus…


No doubt you’ve heard about the new kid on the block. It’s Google Plus and everyone is buzzing about it. Are you worried that you need to catch the G+ wave? Fear not! Here’s what you need to know about G+, how to get started, what to look out for and a few other tips and hints.
Let’s start with what G+ is, and some of the more important features. You can click on the title of each topic for a quick video from Google.

Google Plus Overview:

Hey, it’s a social network. A totally new social network. It’s kind of like Twitter, kind of like Facebook, and then again it’s completely different from both. In the end, it’s a place to share with others, meet new people, and enhance the relationships you presently have in an online environment.

Circles:

In Facebook you might have organized your friends into Lists. That allows you to better adjust the privacy settings and control who sees what you post and filter what you want to see. Circles operate pretty much the same way in G+. I can create circles, add people to various circles and then distribute content to that circle of friends. I can also view the content from a particular circle of friends.
Circles are all drag and drop. Your friends appear on the top and you can drag them down into any circle that might be applicable. Naturally, some people might be in more than one circle. That’s just fine with G+! You start with a simple set of circles but can add, modify or rename any of them to fit your needs.

Hangouts:

This might be one of the better features of G+. Hangouts allow people to video chat in a group setting. The video streams nicely no matter how many people are in on the chat. All you need is a webcam (most laptops now come with cameras built in) and with the click of a button you’re video chatting! When you start a Hangout, it could be open to the Public or you can limit who sees that hangout by simply inviting just a circle.

Settings:

This will be a key part for many people. The settings tab allows you to better control the notifications you receive either by email or sms (text). Want to know when someone comments on your post or adds you to a circle? Just check the box. Conversely, if your inbox is easily overloaded – you can uncheck away!
Seems pretty simple right? Now that you have a basic understanding of what G+ is, let’s dive in!
It all starts with your Google Profile. These have been around for a while and you may have forgotten you even have one. Start by going to https://www.google.com/accounts/Login?service=profiles and entering your Google account username and password. This is probably going to be the Gmail address you use. Do you have a Google Profile? Good! Now if you have a Google + Invite you can start playing with G+ at https://plus.google.com/. Don’t have an invite? Just ask one of your friends, or ask me (Mike912Mueller@gmail.com). I’d be happy to invite you!

Complete Your Profile:

On G+, your profile is now the About Tab. Step One of any social network you join should always be to complete your profile. That starts with a picture of you. Additionally, Google allows you to also post 5 different pictures along the top. Below the five pictures you’ll see “Posts, About, Photos, Videos, +1’s and Buzz”. We can show or hide some of these.
The main section is called “Introduction” and can be used for a bio. You can include anchor text and hyperlinks. On the right sidebar you can show the icons to your other social networks. The left sidebar shows the people you’ve placed into circles and the people who have placed you into circles.
Up on the top right of your profile you’ll see a blue button to “edit profile”. One click and you can make any change you like. As you edit sections you’ll also see the ability to show that section to anyone (Public) or narrow it down to your individual circles. The choice for each section is up to you! Don’t like the idea of showing the world who has added you to a circle or who you have added? You can control that too.

Circles:

Now that you have a complete profile, let’s start adding people to circles. https://plus.google.com/circles/find will get you started finding the people you know. You can search for people by name or even upload an address book and search en mass that way.
Your friends will appear in the upper section and your circles below. To add someone to a circle just drag them to it. People in full color are on G+ and those that have silhouettes are not (yet). You can rename any circle you like, or create new ones as you see fit.

Circle Hints

• While a person might get a notification that you have added them to a circle they do not know what circle you have added the to. You can have a circle called “Dirt Bags” and nobody would ever know.
• If you hover over a friend you’ll be able to see what circles you’ve added them to.
• You can also click multiple friends and drag the selected group to a circle.
• Clicking on a circle will give you a pop up showing you the members of that circle.
• Anyone can add you to their circles, you don’t have to reciprocate and you can control what they can see.
• The person who has been added to the most circles is Mark Zuckerberg – yet he’s not posted a single thing!

The Home Stream:

Up at the top you’ll see 4 buttons. Home, Photos, Profile and Circles.

We’ve covered your Profile and Circles, let’s go to your Home Stream next. Click the left button and you’ll see your home stream. The default setting is set for “Public” and it can get pretty busy. On the left sidebar you’ll see your circles. By clicking on a particular circle you’ll see only those posts that come from that stream. At the top is a box for your input. Where Facebook asks “What’s on your mind?” and Twitter asks, “What’s happening?” I found it funny that G+ emulated them by asking “Share what’s new…” in a very similar way.
Start writing something in the box and you’ll see you can share a photo, a video, even a link to a blog post (like this)! You’ll see a box below showing you who exactly you are sharing this post with. Once you’ve shared the post you can click on the time stamp and get just the permalink to that post. Here’s a sample post I made public: Click here
On the top right you’ll see a small drop down arrow. That allows you to edit, delete, disable comments or disable resharing. People can also +1 your post. That’s a good thing. That’s akin to a LIKE in Facebook.
Go leave a comment on someone’s post. It easy to do and you can always edit your comment later. That’s something you can’t do with Facebook or Twitter.
If you comment on a post and then don’t want to the notifications of everyone after you who posts, you can “mute” that post. This may come in handy if you happen to leave a comment on a post that goes viral.
Here’s another cool tidbit… in a post or comment you can mention a friend by typing a + followed by their name much in the same way you can @ in Facebook and Twitter. That will get their attention and is especially useful if you are sharing a post or comment and want to alert a particular friend.
Moral of the Story:
Google Plus is a new network. It’s a new tool to add to your toolbox. It’s not the Facebook Killer or the network that Twitter should have been. It has it’s good points and it’s bad. It’s a work in progress and changes daily. Personally, I think it’s still missing 4 very big things, “Search, Sort, Sift and Filter. 4 things I want out of Google Plus”

Should you be on Google Plus?

Absolutely! But do so when you have free time. Complete your profile first and then start poking around.

Contact The Mortgage Mark with any questions!!   www.themortgagemark.com   mwilkins@capitalfmc.com

Tackling Tree Issues With Your Neighbors

Tackling Tree Issues With Your Neighbors

When you buy a home, you’re not only purchasing the actual house, but the property and everything that comes along with it. Often, if you’re lucky, this includes a few trees that can add privacy, work as a noise barrier and ultimately increase your home’s value. However, a tree can also mean possible property damage and tussles with the neighbors.

Talk it Out

One of the biggest neighbor disputes involves property lines and trees that cross them. Although you as a homeowner have the right to trim anything on your property, or anything that crosses over onto your property, doing so could have disastrous results.
“Property lines are a gray area,” explains Jim Burgess of Snohomish Arborists. He notes that the best option is to talk to your neighbor first before you take matters into your own hands.
If you have a legitimate concern over a tree on your property, or on your neighbor’s property next door, you have every right to address it — even if your neighbor doesn’t agree with you. The best way to tackle the issue without litigation is to bring in an expert.
An arborist, or tree service consultant, can work with you and your neighbor as a third party to find the best way to deal with a tree. Burgess often says that two consultants will be brought in — one for one neighbor and one for the other — so the most impartial decision can be made.
While the consulting session can run upwards of $100 an hour, Burgess says it’s worth it. You don’t know if the tree is dead, damaged or needs to have specific care given to it. Not only can a consultant help you work with your neighbor, they’ll let you know if the tree needs to be removed.

Don’t Do It Yourself

Pruning may seem like a simple task, but when it’s a 100-year old maple or enormous willow,
you could end up killing the tree and invoking the risk damaging your home or your neighbor’s.
“If you thin a tree improperly, a tree can react and produce large, more hazardous limbs that can go through roofs,” said Burgess. “Some trees, if you cut back too much, you’ll expose them to wounding, disease and then the tree dies.”
Bottom line, says Burgess, if you have a tree of significant value or size, you should bring a certified arborist in.

Avoid a Lawsuit

As mentioned before, you have the right to trim the tree branches hanging over into your yard, but be aware if your work causes damage, you’ll end up as the one responsible.

“When trees aren’t taken care of properly, they can drop the price of the property,” said Burgess. “Trees have very high value and if something is damaged it will be a really large sum in terms of settlement.”
The conclusion, said Burgess, is to negotiate before you litigate. Talk to your neighbor and call in a consultant if need be.
Looking for a consultant or arborist? The International Society of Arboriculture provides a list of certified tree services.


Contact The Mortgage Mark with any questions!

www.themortgagemark.com mwilkins@capitalfmc.com

Transfer Taxes when Buying a home

DEVIATIONS FROM 1% LOCAL TRANSFER TAX

Amended 1/14/2011

The Realty Transfer Tax in Pennsylvania is generally 2% of the sales prices; 1% to the state and 1% to

local government. Some local governments vary their portion. The following is a list of localities that

impose something other than 1%. These figures represent the local portion only; the 1% state portion must

be added for the total amount due.

ALLEGHENY COUNTY

Bellevue Boro – 1½%

Bethel Park Municipality – 1½%

Greentree Boro – 1½%

Hampton Twp – 1½%

McCandless Twp – 1½%

McKeesport City – 2%

Monroeville Municipality – 1½%

Mt Lebanon Municipality – 1½%

Mt Oliver Boro – 2%

O’Hara Twp – 1½%

Penn Hill Municipality – 2%

Pine Twp – 1½%

Pittsburgh, City of / Pittsburgh School District – 3%

Pittsburgh, City of / Baldwin-Whitehall School District – 2½%

Upper St. Clair Twp – 1½%

West Deer Twp – 1½%

Whitehall Boro – 1¼%

BERKS COUNTY

Reading, City of – 4%

CENTRE COUNTY

Ferguson Twp – 1¾%

State College Boro – 1 ¾ %

Taylor Twp – ½%

CHESTER COUNTY
Coatesville, City of – 2%

Tredyffrin Twp – 1½%

CLINTON COUNTY

Colebrook Twp – ½%

East Keating Twp – ½%

DELAWARE COUNTY

Radnor Twp – 1½%

Upper Providence Twp – 2%

ERIE COUNTY

Edinboro Borough – 1½%

LACKAWANNA COUNTY

Scranton, City of – 3%

LUZERNE COUNTY

Kingston Boro – 1½%

Wilkes Barre, City of – 2½%

MERCER COUNTY

Farrell, City of – 2%

Hermitage, City of – 1½%

Sheakleyville Boro – 0%

PHILADELPHIA COUNTY

Philadelphia, City of – 3%

SOMERSET COUNTY

Wellersburg Boro – ½%

WASHINGTON COUNTY

Peters Township – 1½%

Contact The Mortgage Mark with Any Questions!!

www.themortgagemark.com

Four Energy Conservation Myths Costing You Money

Trying to cut back on energy costs? Your “money-saving” tricks may actually be costing you more in long haul.

Myth: Programmable Thermostats Save You Money
Well, they do, but only if you program them to do so. Many people mistakenly believe that these computer-chip, electronic devices will automatically set themselves to operate in the most energy-efficient way. But they don’t. You have to program them so that they stop your ducted air conditioning coming on when it isn’t really needed – at night or when you’re at work or on holiday. So read the manufacturer’s instructions carefully and learn how to set your thermostat to suit your particular needs – lowering it by just 1°C can reduce your bill by up to 15 percent.

Myth: Fans Cool a Room
Fans do not actually cool the air in a room, they cool the people in it by creating a wind-chill effect on their skin. So there is no point leaving a fan on when you’re no longer in a room. Instead, treat it like a light and turn it off when you leave the room. Otherwise, you will just be wasting electricity and running up a large bill.

Myth: Computer Screensavers Save Energy
All a screensaver does is prolong the life of your monitor by displaying a moving image while you are not using your computer, as any fixed image left on would eventually “burn” itself into the screen, ruining it. Screensavers do nothing whatsoever to save electricity – in fact, they burn up quite a lot. If you want to save energy, without turning your computer off, check if it has a special energy-saving mode: go to your operating system’s control panel or preferences and explore the power-management options available.





Myth: Stand-By Costs Less Than Turning On and Off
This is certainly not true. Leaving a machine constantly in stand-by mode consumes a surprisingly large amount of electricity. If you want to save energy – and money – you should always turn your computer off at night or when you will be away from it for a long period of time. Remember also to switch off other computer hardware, such as scanners, printers and external hard drives and speakers at the mains. If they are powered via a plugged-in transformer, that will remain on even when the power button on the appliance has been switched off.


Contact The Mortgage Mark with any questions!

mwilkins@capitalfmc.com

www.themortgagemark.com

5 Questions to Ask Your Home's Inspector

Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!

So, you hire a home inspector, but it seems like they’re speaking an entirely different language - riddled with terms like “serviceable condition” and “conducive to deterioration” - about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.

1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.

I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!

In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).

2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is - “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 - tops.” And that’s useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.

And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.

And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.

3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it’s last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”

This question positions your home inspector to help you:

• understand what does and doesn’t need to be repaired,
• prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),
• get used to the constant maintenance that is part and parcel of homeownership, and
• understand the importance of having a home warranty plan.

4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.

Your best bet is to, at the end of the inspection, while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)

5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections. 


Contact The Mortgage Mark with any questions!!

www.themortgagemark.com

mwilkins@capitalfmc.com

Paying Off A Mortgage Early? Six Things To Consider

Paying Off A Mortgage Early? Six Things To Consider:

Does your employer match any retirement savings you save? If yes, are you maxing out the amount you can contribute? Employer-matched contributions to a retirement plan are often the wisest investment you can make.

Do you have any other debt other than your mortgage? If yes, then most likely it will make sense to try to pay that debt off before trying to pay off your mortgage early.



Do you have at least 24 months of living expenses in liquid assets? Many people suggest a lower number, but after talking with plenty of people who used to have 6-months savings three years ago, I have raised my suggested number from 6 months to 24 months of savings. Yes, I know that is conservative.

Do you currently owe more on your mortgage than your home is worth? If yes, then ask yourself the question of how much you really enjoy living in that particular house. Would you be willing to buy it again for more than it is worth now?

Does the amount of your mortgage bother you? Do you find yourself up late at night worrying about how you are ever going to get out of debt and pay off your mortgage? If yes, what value is peace of mind to you?

Do you think you could get a better return on your money if you invested it in other things? Paying off your mortgage early is really an investment decision. When you line up your various investment track records and future choices, how well does paying off your mortgage early stack up with your other options?


Summary — Is Paying Off Your Mortgage Early A Good Idea?
It depends. I have listened to the experts for years debate this topic and in the end it all comes down to a very personal decision that is not solely based on dollars and cents and returns on investment. At the end of the day, I have seen very smart people choose both sides: some to pay off a mortgage and some to continue to pay “normally.”
Paying off a mortgage early isn’t a matter of making a wise decision — it is most often a matter of personal preference.

No matter what the experts tell you.

Contact The Mortgage Mark with any questions!!!

www.themortgagemark.com   mwilkins@capitalfmc.com