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How Can I Get Rid of Wells Fargo PMI on My Home Loan?

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If you purchased a home with a down payment of less than 20 percent, there’s a good chance you have private mortgage insurance (PMI) wrapped into your Wells Fargo mortgage payment. While it’s easy to assume that you have to pay that extra amount until you pay off your loan, that isn’t the case. Instead, you can get rid of it if you meet certain criteria. So, if you want to know how to get rid of Wells Fargo PMI on your home loan, here’s how to go about it.

Getting Your PMI Canceled on Your Wells Fargo Home Loan

Removing the PMI from your Wells Fargo mortgage is incredibly straightforward. Once you achieve an 80 percent loan-to-value based on the original value of the property at the time of purchase, you can initiate the removal process.

First, you need to make sure that you haven’t had any 30-day late payments within the past 12 months, as well as no 60-day late payments within the past 24 months. Both of those are firm eligibility criteria, so you’ll want to make sure you qualify on both of those points. If so, you can request the removal of your PMI to initiate the cancelation process.

After requesting the cancelation of the PMI, you’ll coordinate with Wells Fargo to get your home appraised. This ensures that the value of your house hasn’t declined since the original loan was issued.

The cost of the appraisal is your responsibility, and it usually runs a few hundred dollars. As a result, you’ll want to make sure you have those funds available before you begin the process. If the appraisal comes through in your favor, the PMI removal will move forward.

It’s important to note that Wells Fargo will automatically cancel your PMI if you achieve a loan-to-value ratio of 78 percent as long as you remain current on your mortgage. If paying for an appraisal isn’t an option at an 80 percent loan-to-value ratio, this could allow you to get rid of PMI without that out-of-pocket expense.

Additionally, if your home value increases enough, you may be able to remove PMI before you reach an 80 percent loan-to-value figure with a new appraisal. However, that option isn’t universally available. As a result, you’ll need to contact Wells Fargo to see if you can go that route.

Alternatives to Canceling Your Wells Fargo PMI on Your Mortgage

While you can use the Wells Fargo PMI cancelation process above, that isn’t your only option for removing your PMI. If your mortgage balance is 80 percent or less than the current value of your home, refinancing could also work.

When you refinance, you’re initiating a new loan. As a result, the original value that’s used for the loan-to-value ratio would change, usually based on a fresh appraisal.

With this approach, you could potentially stay with Wells Fargo as a lender. However, you could also explore other companies if they may be able to offer you better terms.

If you go this route, the process is more involved. While removing PMI using the method above doesn’t require income verification or credit checks, a refinance does. As a result, your financial situation and credit score will impact your eligibility and interest rate.

Additionally, by applying, you may see a temporary decline in your credit score. Similarly, if you move forward with the refinance, your credit score may also change.

A Higher Credit Score May Help

However, if your credit score is higher than when you originally secured your mortgage, this approach may work in your favor. You might be able to get rid of PMI and get a lower interest rate, resulting in a lower payment than your current one. Additionally, if you choose a longer repayment term, that could shrink your monthly payment even more.

Just keep in mind that extending your repayment term could mean paying more interest over the life of your loan than you would have previously. As a result, you may want to use a mortgage calculator to compare your various options, allowing you to select a path that works best for you in both the short and long term.

Have you ever had PMI on a Wells Fargo home loan? Were you able to get it removed? If so, what approach did you use? Share your thoughts in the comments below.

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You Don’t Have to Purchase Property to Invest in Real Estate 

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It may sound like a surprising concept, but you can invest in real estate without actually buying any property. With all the options available to you today, that can be a lucrative way of making money and investing in your future. But it’s not for everyone, and it does come with risks just like any other investment. Still, exploring the different ways you can make money in the real estate industry without purchasing any properties can be worthwhile. Here’s what you need to consider.

Yes, You Can be a Real Estate Investor and Not Own Property

Buying a house has generally been seen as a good investment, because real estate tends to increase in value over time. A lot of people also buy investment properties, but not everyone wants to be a landlord. They also might not have the skills to flip houses, and make money that way. But they still know that real estate is a sound investment choice. Many people wonder how to invest in real estate without buying property, and there are ways you can actually do this successfully.

With wholesaling, real estate investment trusts (REITs), private equity funding, hard money loans, notes, tax liens, mutual funds, and more, there are all kinds of ways to have a financial interest in real estate that doesn’t require you to buy and close on a piece of property. In short, it’s easier than ever to figure out how to invest in real estate without buying property. Then you can add real estate to your investment portfolio and get a good rate of return, but you won’t have the hassle that can come with owning property.

You Don’t Have to Invest Alone

Don’t try to invest alone. When you’re looking at how to invest in real estate without buying property, you want to make sure you’re working with companies that routinely handle these types of investments. That helps pick up the slack, in any areas where you might not be as knowledgeable. It also helps reduce your risk, because you’re able to work with a company that knows what properties to consider and how to make purchases that are going to bring in an income stream for the future.

Be Sure to Consider Your Options

Carefully consider all the options you have for investment in real estate. Some of the choices you can make might be much better suited to your goals than other choices. If that’s the case, you don’t have to make investments you don’t feel good about, or that won’t give you the rate of return you seek. A few of the options for how to invest in real estate without buying property provide a short-term spike in income, while others are more about the long game. Deciding which of those is what you’re interested in, or selecting a mix of both, is important before you get started.

Finding a Trusted Advisor is Important

Whether you work with a company that just handles everything for you, or you’re trying to do some of your transactions without as much help, it’s important to find a trusted advisor to work with. This could be a financial advisor who has a focus on real estate, someone in an investment firm, or a long-term investor you’re working with. No matter who you choose, though, make sure they have the skills you’re looking for, and the ability to really help you understand how to invest in real estate without buying property.

Take it One Step at a Time

You don’t have to go all in on investing in real estate without buying properties, especially not right away. Instead, you want to make sure you’re focusing on your overall goals, and working your way toward them. There will be different opportunities to do that, and real estate is just one of them. Since you can get involved in real estate even through investment trusts and mutual funds, there are always opportunities for you to consider. Focusing on how to invest in real estate without buying property is just the start of determining what you really want to invest in for your future.

Overall, understanding how to invest in real estate without buying property is important. It can give you another avenue for investment, and help reduce any concerns you have about options and opportunities. There are a lot of great ways to get started with investments, and excellent ways to build your portfolio without the need to actually close on properties in your name. When done right, other types of real estate investments can be just as lucrative and valuable as actually purchasing property. By working with people you can trust, and learning all you can about the process, you have a better chance of a healthy financial future.

 

 

This Is NOT The Time to Purchase a New Home

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When mortgage interest rates are low, many people assume that makes it a great time to buy a new house. While lower interest rates are certainly a positive, other factors lean in the other direction, often outweighing any benefit a person may get from snagging a favorable interest rate. If you are wondering why now is not the time to purchase a house, here’s what you need to know.

Skyrocketing Home Prices

One of the most significant factors regarding why now isn’t a great time to buy a house involves home prices. The average home value in the United States is $298,933 (as of August 2021), representing a year-over-year increase of 16.7 percent. Plus, the prices in some cities rose much faster, and many are continuing their skyward trajectory.

While the rising prices may make it seem like buying sooner rather than later is a wise way to stay as far ahead of the curve as possible, that may not be true. It isn’t clear whether these growth rates will continue. Ultimately, there is a chance that once the current buying spree calms, the market will correct, bring home prices back down a bit.

Low Inventory Numbers

In many parts of the country, the inventory of homes is near record lows. Partially, this is because of the wide-scale buying activity spurred by the pandemic and reduced interest rates. However, some of it is also related to the time of year. Often, summer is a major buying season, putting additional stress on an already tight market.

When all of those factors come together, buyers simply don’t have as many options available. As a result, you may feel like you have little choice but to settle for a property that doesn’t meet all of your needs because that’s what is on the market.

With a purchase as significant as a home, settling isn’t necessarily smart. You may discover quickly that what the home lacks is actually problematic, leaving you dissatisfied with the house.

No Leverage to Purchase a New Home

When inventory is low, and prices are moving up, buyers lose a lot of leverage. Sellers don’t necessarily need to negotiate, as they know that they have a good chance of finding a different buyer who is willing to pay more or ask them for less.

For example, even if a home inspection reveals an issue, getting the seller to reduce their price or pay for the repair may be challenging. If the seller believes another buyer would go forward with the purchase at their preferred price anyway, they might refuse, leaving you in a tough position.

Today, it’s far more common for a home purchase to go through with a price above the initial asking. Additionally, fewer contingencies is a tactic some buyers use to make them more attractive to sellers. If you’re looking to purchase a home in a “hot” area, you need to decide if you’re willing to go to similar lengths. If not, waiting may be your best bet.

Rushing the Decision

Rising home prices and low inventories mean buyers have to act quickly. Otherwise, another prospective buyer might snatch up the property before you have a chance to make an offer. This creates a sense of urgency, one that may cloud a buyer’s judgment.

The issue with this scenario is that rushing could lead to poor decisions. You may extend an offer because you’re afraid you’ll miss out on a house, not because you feel strongly about having it.

Plus, the current state of the market adds an extra level of pressure to the situation. Often, buying a home is stressful when conditions favor buyers, let alone when it’s a seller’s market. The additional pressure could also lead to rushed decisions, increasing the odds you’ll overlook a problem or make another kind of misstep.

Are There Any Reasons to Purchase a Home Now?

A home purchase is a big decision, one that’s highly personal. For some people, buying now is going to be a necessity. If that’s the case, then make sure you understand the local market and what it means to go forward with a purchase in the current climate.

However, if you have the ability to wait, doing so could be smart. Market conditions are favoring sellers now, but that may not be the case long-term. You want to make sure that you factor that into your decision-making process. That way, you can make the choice that’s best for you.

Are there any other reasons that lead you to believe that now is not the time to purchase a house? Do you disagree with the points above and think that buying now is a good idea? Share your thoughts in the comments below.

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What Does it Mean to Recast Your Mortgage?

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When homeowners are looking for ways to reduce their monthly mortgage payments, most focus on refinancing. However, there is an alternative that can yield similar results without many of the hassles: mortgage recasting. When you recast your mortgage, you can secure a lower monthly payment, as well as save on interest and avoid fees associated with refinancing. If you’re wondering if mortgage recasting is right for you, here’s what you need to know.

What Is Mortgage Recasting?

Mortgage recasting is a process where the borrower pays a large lump sum to their mortgage lender, dramatically reducing the principal. In exchange for the substantial payment, the lender then reamortizes the loan based on the new, lower balance, creating a reduced monthly payment.

When you recast your mortgage, no other details of the loan change. You maintain the same interest rate, and the term length stays intact. Only the principal balance and monthly payments change.

Why Would You Recast Your Mortgage Instead of Refinancing?

Borrowers can potentially experience a few benefits if they opt to recast their mortgage instead of refinancing. First, it gives you the ability to keep your interest rate.

When you recast your mortgage, the interest rate is unchanged. With a refinance, the rate is based on your current credit score and market conditions. If you wouldn’t qualify for a rate lower than what you have on your loan now, then recasting lets you keep your existing rate.

Second, a mortgage recast doesn’t require a credit check. You’re staying with the original lender and maintaining the same general loan terms, so checking your credit isn’t necessary. If you refinance, a credit check is required, even if you use the lender that has your current mortgage.

Third, the cost of a mortgage recast is usually far lower. While you may see a small fee for the recast – usually in the $250 to $500 range – it’s far below what you’ll pay to close on your refinance loan. On average, the closing costs associated with a refinance are near $5,000, and that may not be the only fee you encounter.

Which Mortgage Loans Are Eligible for Recasting?

Only certain kinds of mortgages are eligible for recasting. First, you need to have a loan with a lender that has a reamortization program. Not all lenders do, so it isn’t an option available to everyone.

Second, you need the right mortgage type. Often, you’ll need a conventional loan to qualify. If you have an FHA, VA, or USDA loan, the lender may not have the ability to complete a recast.

Finally, your loan has to be in good standing. Typically, a lender won’t reamortize a mortgage if you’re behind on payments. Additionally, it may not be an option if your loan is currently in forbearance.

How to Recast Your Mortgage

If you want to recast your mortgage, you’ll need to complete several steps. Here is an overview of the typical process.

  1. Contact Your Lender

Before you do anything else, contact your lender to ask about their mortgage recast process and requirements. Every loan provider may have different qualifications – such as a minimum lump sum payment – as well as unique steps you’ll need to take.

By speaking with your lender first, you can ensure you can qualify for the reamortization. Plus, you’ll be able to get information about the process, including any required forms, how to make a principal payment, processing times, fees, and similar details.

  1. Send the Lump Sum Payment

Once you have spoken with your lender, you can arrange to send the lump sum to pay down the principal. Often, it takes a couple of business days to process, so keep an eye on your balance to see when it posts.

  1. Move Forward with the Recast

After making the principal-reducing payment, you’ll need to finalize the recast. In some cases, this means contacting your lender again to request the reamortization of the loan. You may also need to handle the fee for the service at this time.

However, even your lender initiated the review based on your previous discussion, it’s still wise to reach out again. That way, you can confirm everything is moving forward.

  1. Continue with Your Old Monthly Payment

Recasting your mortgage doesn’t happen instantaneously. Instead, it isn’t uncommon for it to take 45 to 60 days before a new payment is assigned. Until that time, continue with your old monthly payment. That way, your loan remains in good standing.

  1. Review Your New Monthly Payment

After the processing time passes, you should see a new monthly payment on your mortgage. Make sure to review the amount. That way, you can update your budget accordingly.

Alternatives to Sending a Lump Sum Payment

While sending a lump sum principal payment is often the fastest way to qualify for a mortgage recast, it isn’t always your only option. Some lenders will allow you to reamortize if you send enough principal-reducing extra payments over time.

For example, if your assigned monthly payment is $1,500, but you’ve been sending $1,750 instead, that extra $250 is a principal-reducing payment. Similarly, if you use biweekly payments, you technically make 13 payments per year instead of 12. As a result, if your monthly payment was $1,500, you’d make $1,500 in principal-reducing extra payments each year.

Many people send their tax refunds, work bonuses, or similar lump sums to their mortgage as extra principal-reducing payments. If you fall in that group, those funds also count.

Essentially, any money you send to your mortgage specifically to reduce the principal can help you qualify for a recast. Once you’ve sent in enough – based on your lender’s requirements – the lender may be willing to reamortize without an additional lump sum principal-reducing payment.

This approach can be ideal for anyone who wants the option to recast but doesn’t have access to a large lump sum today. However, it does mean staying with your current monthly payment until you’ve reached a point of qualifying, so it won’t help if you need to reduce your monthly payment quickly.

Have you recast your mortgage? Do you think it was the right decision? Share your thoughts in the comments below.

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Summer Housing Expenses You Shouldn’t Ignore

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While summer is usually a time for fun, neglecting your home maintenance needs isn’t a good idea. Many summer housing expenses are crucial for keeping your property in good repair and making sure all critical systems are running efficiently. If you want to make sure you tackle everything this year, here are some summer housing expenses you shouldn’t ignore.

Air Conditioner Service

During the summer, your air conditioner gets a workout. If you didn’t have your air conditioner serviced within the last year, you need to handle it now.

Without proper maintenance, your air conditioner may have a shorter life. Plus, it could be more prone to a breakdown, something that could make living comfortably difficult if it happens during a hot spell.

If the technician spots an issue, they can take care of the repair proactively. In many cases, this can actually save you money. When a part fails, there is always a chance the incident will damage other components. By fixing the part before that happens, you may be able to avoid other damage that would otherwise require a repair, too.

Additionally, a well-maintained air conditioner is more efficient. By getting your service handled, you may be able to save on your electric bills during the hottest time of year. This may even offset the cost of your service, depending on how much more efficiently your air conditioner might operate after it is fixed up.

Replace (or Clean) Your HVAC Filters

Another important step for making sure your air conditioner is going to work properly is to replace or clean the HVAC filter. Not only will it improve your air conditioner’s efficiency, but it can also help you keep the air in your house clean, healthy, and allergen-free.

Whether you need to replace or clean your filter may depend on the type you have and its condition. Some filters are designed so that they can be washed instead of replaced. However, others are essentially disposable, making replacement the only option.

Clean Your Ceiling Fan (and Check Its Direction)

Ceiling fans can be excellent for keeping your home cooler. However, as they operate, they can end up coated in dust.

Take a few minutes to clean your ceiling fan blades. Then, before you turn it back on, make sure the blades are spinning in the proper direction. Ceiling fans usually have a switch that lets you control the direction of the spin. One of the directions is better for cooling while one helps you stay warmer in the winter.

If your fan isn’t going in the correct direction, look for a simple switch on the unit. Usually, all you need to do is flick it into the other position, and it will start rotating in the cooling direction when you turn it back on again.

Exterior Paint Repair

Over time, your exterior paint can crack and chip. Since your paint is effectively a seal that protects the underlying materials, the damage needs to be addressed. Otherwise, water can work its way through the cracks or under chipped areas, increasing your chances of having rot or other issues.

Summer is the perfect time to address your exterior paint. Warmer temperatures lead to faster drying times, which works in your favor. Just make sure that there isn’t any rain in the forecast for at least 24 hours. That way, the paint can cure properly, restoring your barrier.

Concrete Repair

Just like cracked paint, cracks in your concrete paths or driveways let water seep into areas, potentially leading to damage. During the colder months, water in the gaps can freeze, making cracks worse.

Often, summer is a great time for concrete repair. Like paint, the warmer temperatures help the concrete dry quicker.

Once the repair is made, you still don’t want to walk or drive on the fresh concrete for at least 48 hours. However, it can take up to 30 days to reach full strength, though warmer, dry weather may speed that up a bit.

Reseal Fencing and Decking

If you have wood fencing or decking, summer is a great time to reseal them. Wood can be damaged by water and sun exposure, causing the material to degrade. Not only will resealing restore the protective barrier, but it will also dry more quickly due to the warmer temperatures.

Like paint, you do want to choose a day when you aren’t expecting rain within the next few days. That way, it can fully set before it’s exposed to water.

Gutter and Downspout Cleaning

In some parts of the country, summer storms can be incredibly dramatic. If you want to make sure your gutters and downspouts can swiftly move water away from your home, then cleaning them regularly is a must-do.

Typically, you would want to clean the gutters and downspouts in the spring and fall. However, if you haven’t tackled it yet this year, doing it now is a smart move.

Pest Control Treatments

As the temperature rises, insects and other pests are often more active. If you want to keep them from harming your home, then having a summer pest control treatment is often a must.

Work with a pest control professional who can not only apply treatments but also inspect your house for issues that may allow pests to make their home on your property. They can help you identify potential repairs to keep pests out and away, and some may even be able to handle those fixes for you.

Re-Caulk Windows and Doors

The caulk around your windows and doors breaks down over time. When that happens, the seal isn’t as effective, allowing the hot outside area to make its way inside.

If you want to keep your electricity bills in check and avoid overtaxing your air conditioner, take the time to inspect the caulk around your windows and doors. If you see any spots where it isn’t in good shape, re-caulk them. Usually, that only takes a few minutes, but it can make a big difference when you’re trying to stay cool.

Can you think of any other summer housing expenses people shouldn’t ignore? Share your thoughts in the comments below.

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Do This If You’re Priced Out of The Housing Market

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Many people would love to buy a house, only to be stymied by the prices in their local housing market. In many parts of the country, home values are moving up quickly, making it harder for prospective buyers to find a suitable property that they can afford. Luckily, even if you’re priced out of the housing market, that doesn’t mean you can’t achieve your dream of home ownership. If you aren’t sure where to begin, here are some things you can do.

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5 Things You Should Know Before Buying a Condo

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It’s normal to be excited when you’re getting ready to buy a condo. The thing is, you don’t want to let your excitement blind you along the way. If you overlook certain critical points, you may end up with issues that are hard to come. Some aspects of condo living may increase your costs or lead to frustration, potentially so much so that you regret your purchase. If you want to make sure you’re happy with your new condo. Here are five things you need to know before buying a condo.

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Understanding the Risks of a Reverse Mortgage

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On the surface, a reverse mortgage seems like a great idea. As you enter retirement, you can use the equity in your home and receive guaranteed tax-free income in exchange for a share of that equity. However, like anything else, there are always downsides, so make sure you have done your research and thoroughly understand the risks of a reverse mortgage.

What Is a Reverse Mortgage?

A reverse mortgage is precisely what the name implies, a mortgage done in reverse. Instead of you making payments on a mortgage, your reverse mortgage provider makes payments to you. You can get your funds in a lump sum, as a line of credit, or in installments, and nothing is owed so long as you live in the home. The reverse mortgage will only become due if you move out, sell the home, or pass away.

Hidden Costs and Fees

Just like a regular mortgage, there are closing costs associated with a reverse mortgage. However, they’re typically much higher than a standard mortgage. Every lender will have slightly different ways to provide a reverse mortgage, and the fees, interest, and other costs will be delineated in the contract terms. Make sure you completely understand all the costs both upfront and over the term of the loan. It can be helpful to have an independent financial counselor review the reverse mortgage paper to ensure you understand all outlined terms outlined prior to signing.

Unplanned Circumstances

Probably the greatest risk of a reverse mortgage is the uncertainty the future inherently brings. Typically, there are several circumstances in which the reverse mortgage comes due in full immediately. For example, If you end up in an assisted living facility or nursing home, you would be forced to sell the home and pay back the loan.

You are also required to keep up on the taxes and keep current with homeowners insurance as well as sufficiently maintain the property. If you become disabled or the rest of your income stream evaporates and you are unable to fulfill these requirements, the lender can immediately call the loan due in full.

Getting Out of a Reverse Mortgage

Perhaps you already have a reverse mortgage and have now decided it would not be in your best interest. The good news is that you can learn how to get out of a reverse mortgage. If you are within three days of signing the paperwork, you can rescind the agreement with no financial consequence. Beyond that, you could also sell your home, take out a home equity loan or home equity line of credit, or use your savings to pay it off. If none of these sound like viable options, Point offers a Home Equity Investment that provides more flexibility than a reverse mortgage as well as having no payments during the 30-year term. Talk to your financial advisor to see what option works best for you.

What Is a PACE Loan and Are You Eligible for One?

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When you want to update or upgrade a property, finding the right kind of financing options is often essential. For some property owners, PACE loans may be the perfect fit. However, it won’t work for everyone. PACE loans have unique benefits. Yet, they can only be used under specific circumstances. If you are wondering what a PACE loan is and whether you’re eligible for one. Here’s what you need to know.

What a PACE Loan Is

A PACE loan is a property improvement financing option that focuses on energy efficiency-related upgrades. PACE actually stands for Property Assessed Clean Energy, denoting the purpose of the program.

There are two segments of the PACE program. First, there are commercial PACE loans that focus on business properties. The second option is a residential PACE loan. This is also known as an R-PACE, that is available for qualifying residential projects.

With a PACE loan, the property itself serves as collateral, similar to what you’d see with a renovation mortgage, a cash-out mortgage, or other options many people pursue to finance improvements. However, with a PACE loan, you can finance up to 100 percent of the renovation costs, all without having to cover a down payment or go through a traditional underwriting process.

Plus, unlike those alternatives, the PACE loan is tied to the actual property, not the property’s owner. Since the loan is associated with the property, the remaining balance can be passed from one owner to the next if the property is sold.

Additionally, how a PACE loan is paid back also differs. Instead of the typical monthly payment approach, PACE loans are subject to property assessments. The assessments occur regularly over the course of a set amount of time, usually between five and 20 years, depending on the life of the improvements involved in the project.

The assessment functions similarly to a property tax. Once the assessment is complete, the property owner pays the identified amount. Failing to do so usually carries consequences that are a lot like what you encounter if you don’t pay property taxes.

PACE Loan Eligibility Requirements

The primary eligibility requirements for a PACE loan are two-fold. First, you have to be a property owner, not just a renter or lessee. Second, the updates must be energy efficiency improvement-related. This can include a wide range of project types, including solar panel installations, boiler upgrades, and LED installations, as well as for certain disaster preparedness purposes, like earthquake seismic retrofitting.

It’s also important to note that your project may need to meet a minimum cost requirement. For example, you typically have to borrow at least $2,500.

However, a few other factors may disqualify you. For example, being behind on your mortgage or property taxes, a recent bankruptcy, or liens or judgments on the property could prevent you from securing PACE financing.

Otherwise, you have to be in an area with an active PACE program. The PACE loans are usually administered by a local municipality or through a partnership between a government entity and a private company. They aren’t broadly available, particularly for residential property improvements.

It’s also important to note that you may have to choose from a select list of approved contractors. You’ll need to review your local PACE loan program to determine if only specific contractors are permitted.

How to Apply for a PACE Loan

If you want to apply for a PACE loan, you’ll need a loan servicer in your local area, as that may be the only entities you can work with based on how the programs are usually structured. Since these are administered at the local level, some of the application processes may vary.

However, applying tends to be straightforward and not completely unlike securing other kinds of renovation financing. You’ll need to provide details about yourself – including credit and wage-related information – as well as information about the property and your proposed project.

Once you submit that information, your eligibility is determined quickly. After approval, the funds are disbursed for the qualifying project in accordance with program rules.

Have you ever gotten a PACE loan? If so, what was your experience like? If not, do you feel it is a good option for you? Share your thoughts in the comments below.

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Is It Ever Worth Buying Solar Panels For Your Home?

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buying solar panels for your home

For many homeowners, finding ways to save on their electricity bills is a priority. In most parts of the country. Utility costs usually go up over time and can be hard to shoulder for many households. On occasion, this piques homeowner interest in solar panels. However, it’s normal to wonder. Is it ever worth buying solar panels for your home? After all, they can be pricey to install and have to be maintained. So do you get enough from them to make it worth the investment? If you’re trying to decide if buying solar panels for your home is the right move for you. Here’s what you need to consider.

The Cost of Purchasing and Installing Solar Panels

First and foremost, you need to determine how much it will cost to buy the solar panels you need.  You also need to understand how much additional equipment is required – and have them installed. Along with the panels themselves. You’ll usually need other items. Like an inverter, cables, wiring, and metering equipment. You may also want to invest in batteries to store some of the energy you produce. Though those tend to be incredibly costly.

Installation can also come with a large price tag. Usually, solar panel installation requires specialized skills. That can push the total cost up.

Ideally, you want to gather several quotes in advance. That way, you can get a grip on the price. Thus, allowing you to determine if the investment is worthwhile.

Solar Panel Incentives in Your City, State, or Country

At times, there are incentives available that can offset some of the cost of buying solar panels for your home. For example, you may be eligible for rebates, tax breaks, subsidies, or other incentive programs.

In most cases, incentives are offered through the government – including on the local and national level – though they may also be available through your utility company. The incentives vary regularly, so you need to review the programs to see when they expire, allowing you to estimate which ones may be available to you based on your prospective installation date.

Ongoing Maintenance After Buying Solar Panels for Your Home

After installation, you have to contend with maintenance costs. The solar panels are a critical energy system, and they can’t be left unmaintained. If you neglect maintenance, you may find your system breaking down quickly or not functioning at its best.

Usually, cleaning is the most frequent form of maintenance you’ll need to handle. However, inverters, batteries, and other components may only last several years. As a result, you might have to plan for regular replacement based.

Additionally, you might need to budget for panel damage. While today’s solar panels are tough, that doesn’t mean they can’t be harmed. For example, a hail storm could be problematic and may require a panel to be repaired or replaced if it is damaged.

Sun Exposure on Your Roof, Not Just in Your Area

While solar panels are more efficient than they used to be, you get the best performance if your solar panels get a high amount of direct sun exposure. That means you need to look past the weather in your region and actually check out how sunlight moves across the section (or sections) or your roof you are considering for the installation.

Your Current Electric Bill

Your current electric bill is brimming with information that can help you decide if buying solar panels for your home is a good investment. Not only does it list your current electricity costs, but it can also reveal the amount of electricity you use, usually in kWh.

You can use the kWh information to estimate the number of panels you need based on the amount of sunlight the installation area receives. Alternatively, you can provide that information to the companies you receive estimates from, allowing them to give you a more accurate quote.

Once you have an idea of how much a solar panel system that could cover your energy needs costs, you can estimate how long it would take to recoup that expense through electricity bill savings. For example, if the solar panel system would run $20,000 to purchase and install, and your monthly electric bill is $200, then it would take around eight years and four months to recoup that investment, not including the additional money you’ll spend on maintenance.

Is Buying Solar Panels for Your Home Worth It?

By looking at all of the information above, you can estimate how long it would take to get your money back after buying solar panels for your home. At that point, you can decide if the investment is worthwhile to you.

For some homeowners, it will be incredibly worthwhile thanks to a high amount of sun exposure, solar panel incentives, and other factors. For others, the cost of a system that can handle 100 percent of their energy needs will be too high to make recouping the investment in a timely manner possible.

Ultimately, the choice is always yours. However, by doing the math, you can make sure you understand the financial side of the picture, ensuring you make a choice that’s best for your household.

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Do you think buying solar panels for your home is ever a good idea? Why or why not? Share your thoughts in the comments below.

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