Real Estate Information Archive

Pay Yourself First

The principle to pay yourself first has been referred to as the Golden Rule of Personal Finance.

The concept is that one of the first checks you write each month is for your own savings. The rationale is that if there is no money left after a person pays their bills, there is nothing to contribute to savings or investments that month.

By establishing a priority to save, a person realizes that the balance of their monthly income must cover living expenses and other discretionary spending. This is a much different strategy than saving what is left over from monthly expenses and other spending.

Many financial experts have likened an amortizing mortgage to a forced savings account because a portion of each payment is applied to the reduction of the principal amount owed. Some homeowners have taken that concept further with a shorter term mortgage to build equity faster.

In the example below, a $250,000 mortgage at 4% interest is compared with two different terms. The 30 year mortgage would have payments of $1,193.54 each month with the first payment having $360.20 being applied to the principal. Each payment would have an increasingly larger amount applied to the principal.

The 15 year mortgage would have payments of $1,849.22 each month with the first payment having $1,015.89 being applied to the principal. The $665.68 difference in payments goes toward reducing the loan amount and acts like a forced savings.

A homeowner might opt for the longer term and intend to put the difference in the two payments in a bank savings account each month or make an additional principal contribution to pay the mortgage down. However, as any person responsible for paying household bills knows, there will always be something that comes up that could hijack your intentions.

By committing to the shorter term mortgage, a borrower is committing to make the higher payment each month and the benefit is that it will reduce your principal balance faster.

It's a Big Difference

Let’s say that you just won $8,750 on a lottery scratch-off ticket. You’ve decided to be

frugal and invest the money and have decided on three alternatives: buying a certificate of deposit, a mutual fund or use the money as a down payment for a $250,000 home.

To compare the three alternatives, let’s look at the equity in each one three years from now.

The certificate of deposit can be invested at 1.3% in today’s market and you be

The Pride of Homeownership 

 

Homeownership has long been a part of the American Dream.  To have a place of their own to call home, raise a family and to share with friends

Among the benefits of homeownership is the financial security and investment aspect. No longer would the homeowner being obligated to a landlord.  They would be slowing paying off their mortgage and eventually retire.

There is a responsibility that comes with homeownership, however.  These responsibilities can be broken down into the 3 M’s of homeownership;

1. Maintenance – this is something every homeowner has to deal with.  Simple routine maintenance can go a long way.  By changing filters, touching up paint, and cleanings will help keep the home livable and maintain value.
2. Minimizing expenses – by having reputable service providers, keeping the temperature set at a reasonable number and understanding when a repair is appropriate instead of a replacement.
3. Managing debt – taking advantage of low interest rates, paying on time, and making a little extra payment each month can save a great deal of money in the long run.  Also, having service contracts and the proper insurance to save a homeowner a good deal of money.

And let’s not forget the memories and good times the home brings to the family.  These can be priceless…

We look forward in assisting you or your family or friends in finding the pride of homeownership here in the resort areas of Bethany Beach and Fenwick Island, Delaware.

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com

A Daily Email List of New Homes for Sale as they Hit the Market in Bethany Beach – Fenwick Island and the Resort’s Surrounding Areas!

Just Click Here…

June marks the start of summer – a time when Delawareans and folks from across the country flock to our state's pristine 5-star beaches of Bethany Beach, Fenwick Island and outdoor spaces surrounding our resorts. As we prepare to enjoy all that summer has to offer, it's important to remember that June also marks the start of the Atlantic hurricane season.

Those of us in the resort have witnessed first-hand how destructive severe tropical weather can be. In 2012, Superstorm Sandy, forced evacuations across the state and inflicted tens of billions of dollars in damage to our neighboring communities along the East Coast. Superstorm Sandy reminded us of the threats associated with living in the lowest-lying coastal state – and why it’s so important that we prepare for hurricane-related hazards.

In Delaware, even communities miles inland from the coast can experience the threat of powerful winds, rainfall and flooding when hurricanes or severe storms hit. Here are some tips to remember during hurricane season:

Prepare. Learn more about the potential hurricane-related hazards in your area from wind, rainfall and flooding. Assess potential flooding risks nearby and learn accessible evacuation routes for your family and community.

Plan. Talk to your family and strategize methods of communication, transportation, and shelter for potential disasters. Maintain a supply kit that includes water, food, flashlights, batteries, and other materials that you and your family will need if you lose electricity.

Stay Informed. Familiarize yourself with the risks that coincide with tropical storm systems and learn terms to help identify hazardous situations; like storm surge, wind-scale or short-term watches and warnings. Stay current on weather reports and sign up for Wireless Emergency Alerts on your mobile device.

I hope that you, your family and your friends stay safe and enjoy the start of summer. For more information on hurricane preparedness, check out www.ready.gov/hurricanes.

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com

A Daily Email List of New Homes for Sale as they Hit the Market in Bethany Beach – Fenwick Island and the Resort’s Surrounding Areas!

Just Click Here…

Does Your Insurance Cover Your Assets?

With recent events many homeowners who thought their insurance protected them are finding that it did not cover them sufficiently. As of March 16, 2015 FEMA has enacted new Base Flood Plan elevations.  Homeowners, who have flood insurance, should check with their carriers to see if their policies are going to increase and what they should do to prevent and cover themselves in the event of a hurricane or flood.

Here are a few tips on making sure you are protected;

1. Research: Ask your insurance agent “What doesn’t my policy cover?” This way you will know what else is necessary to purchase for your protection.

2. Rebuilding: Find out the average square foot building cost in your area.

3. Replacement: Get insured for the replacement value of your personal items and document them.

4. Relocation: Have coverage to get housing if you are displaced for a period of time.

These few tips could save you a lot of heartache and money in the event of a natural disaster.

Please share this with your friends.  You could be doing them a big favor!

As always, give us a call if we can be of assistance here in the Bethany Beach, Fenwick Island and surrounding Delaware resort areas.

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com

A Daily Email List of New Homes for Sale as they Hit the Market in Bethany Beach – Fenwick Island and the Resort’s Surrounding Areas!

Just Click Here…

Published on Apr 27, 2015

RE/MAX researches 53 major metropolitan markets and analyzes the data to get a pulse on the US housing market. Here are some highlights from this months report. To download the full report click here. For more information about your local real estate market and what these trends mean for you, contact Audrey & Frank Serio, CRS with REMAX By The Sea   Serving Bethany Beach, Fenwick Island and the surrounding Delaware resort areas.

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com

A Daily Email List of New Homes for Sale as they Hit the Market in Bethany Beach – Fenwick Island and the Resort’s Surrounding Areas!

Just Click Here…

Published on Mar 27, 2015

RE/MAX researches 53 major metropolitan markets and analyzes the data to get a pulse on the US housing market. Here are some highlights from this months report. To download the full report Click Here. For more information about your local real estate market and what these trends mean for you, contact Audrey & Frank Serio, CRS with REMAX By The Sea, Bethany Beach Delaware.  Selling the fine homes of Bethany Beach, Fenwick Island and the surrounding resorts. 

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com

A Daily Email List of New Homes for Sale as they Hit the Market in Bethany Beach – Fenwick Island and the Resort’s Surrounding Areas!

Just Click Here…

DSHA Announces Big Changes to Homeownership Programs

During a Lender’s Meeting today, DSHA announced the following changes to Homeownership Programs:

Effective immediately, Homeownership program income limits will no longer be based on county and family size. The new statewide income limit is as follows:

New Homeownership Program Loan Income Limit Effective March 10, 2015

DSHA has also announced the elimination of Homeownership Program Purchase Price Limits and has replaced that limit with a statewide maximum loan amount.

New Homeownership Maximum Loan Amount Limit Effective March 10, 2015

End of Advantage 3 and the launch of Advantage 4 grant program

Also announced during the meeting was the Advantage 3 grant program would be replaced by Advantage 4. Advantage 4 will provide a larger grant amount equal to 4% of the 1st mortgage that is used to cover down payment and closing costs. Advantage 3 reservations will be accepted until 5:30 PM on March 13^th and Advantage 4 reservations will begin being accepted at 9:00 AM on March 16^th. 

Changes to Second Mortgage Assistance Program (SMAL)

Also announced were the following changes to SMAL. Effective immediately, SMAL income and purchase price limits will no longer mirror the Homeownership Program limits, but will be tied to the limits established for the Delaware First-Time Homebuyer Tax Credit program. This means in some cases, borrowers who are eligible for a first mortgage through DSHA may exceed income or loan amount limits for SMAL.

Advantage 4 eligibility criteria will match those of the Homeownership Program, so borrowers who do not qualify for SMAL may want to consider using Advantage 4 instead.

Also announced, while DSHA strongly encourages a home inspection it was announced this was being eliminated as a requirement for SMAL applicants effective immediately.

Faster Purchase at US Bank with Doc Velocity

During the meeting, US Bank provided information on the Doc Velocity system that they are rolling out to lenders. Doc Velocity is a closed loan delivery system that will provide greater efficiency in reviewing closed loans for purchase and clearing any deficiencies. The result of the initial roll out is that loans are received and purchased in half the time as the paper process.

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com

A Daily Email List of New Homes for Sale as they Hit the Market in Bethany Beach – Fenwick Island and the Resort’s Surrounding Areas!

Just Click Here…

38245 Keenwik Road

Keen-wik on the Bay

West Fenwick Island DE 19975

5 Bedroom 31/2 Baths

Fabulous bay and Ocean City skyline views.Open & airy floor plan-lots of living spaces and 5 bedrooms which includes 2 master suites. Featuring gourmet kitchen, sunroom, upgraded master bath,office/bedroom/bonus room. 75'bulkheaded lot with docking for more than one boat. A MUST SEE

Being Offered For Only:

$849,900

Features

• Granite Kitchen Counters with Glass/Aluminum Tile Backsplash.

• Updated Kitchen Appliances!

• First Floor Bedrooms Carpet installed in 2014!

• Hardwood Floors in Living Area.

• Granite/Marble Master Bathroom and Shower!

• Schluter Shower Drain system in Master Bathroom.

• WAUPACA Elevator.

• Whole-House Water Filter and Water Softener!

• Three Exterior No-Maintenance Decks and a 3-Season Room!

• 75 ft Boardwalk Bulkhead replaced in 2004!  W/ 25’ Pier.

• 15’ X 55’ Side Expansion of House available.

​​

Lot Size: 7405 sq ft

Home: 3362 sq ft

For Additional Information Call

Audrey & Frank Serio, CRS

REMAX By The Sea

Bethany Beach DE 19930

Direct: 302.537.3171

Frank@TheSerios.com