Approximately 160 million people recently received a one-time stimulus payment from the IRS. This money can be used for a variety of things, including putting down a down payment for a home or making a few repairs. Whether you plan on buying, selling, or renovating a home, it’s going to be a major investment. These activities can get expensive quickly, but fortunately, there are ways you can save money. Here are seven finance tips and tricks to save money on your home.
Reduce Home Inspection Expenses
Home inspections are necessary to help spot potential problems in your home. These inspections can cost up to $400 but can save you thousands in future repairs. While you are getting an inspection, there may be additional costs included for testing common issues. For example, the home may be tested for lead, mold, and radon testing. A home that is over the acceptable level of 4 pCi/I has 35 times as much radiation than if your family is standing next to a radioactive waste site.
A finance tip to save money on home inspections is to check fees before hiring a home inspector. Many home inspectors share this information on their social media feeds and websites. By comparing costs, you can save money while making sure you stay on top of any potential problems. Inspect items yourself along with the inspector and ask plenty of questions to ensure you don’t miss anything that could cost you dearly later. Make sure that all the utilities are turned on before the inspection begins so that water and electrical issues can be thoroughly examined.
Consider Alternative Housing Options
If you are looking to buy a home, there are recent trends in affordable alternative housing options to consider. Tiny homes and RVs have become popular trends as well as homes made from environmentally friendly materials. For example, there are approximately 11 million unused shipping containers that are versatile for a variety of purposes such as building a home. Living in a shipping container home can save you money, especially if you want to build a home from scratch.
Prepare Your Home to Sell Faster
Trying to sell your old home while buying a new one can create a number of potential financial problems. About 50% of the DC Metro market listed homes didn’t sell the first time. If you want to save money, it’s important to prepare your old home to sell faster to avoid unnecessary ongoing expenses. Spruce up the interior and exterior by clearing any debris and making it look more enticing. Apply a new coat of paint and make as many minor repairs as you can yourself.
Look for Relisted Properties
If you are buying a home, you can save money by looking for a home that has been on the market for a while. The longer it has been up for sale, the more likely that the seller will accept a much lower offer. Real estate agents will often take a home that hasn’t sold off the market and then relist it. Pay attention to the continuous days on market in the MLS listings. This can help you purchase a home at a bargain price.
Pay Cash When Remodeling
When it comes to finance regarding a remodeling, you can save money by paying cash rather than taking out a loan or using a credit card. By paying cash, you can keep yourself on budget and avoid buying items you don’t need. You will also avoid paying interest on loans and credit cards. Paying cash also makes you focus on the highest priorities. It may take you longer to get the work done, but it will pay off in the long run.
Invest in Supplemental Insurance
Homeowner’s insurance is essential for saving money when things go wrong. However, there are other types of insurance that can help you save money on your home as well. Supplemental insurance can protect you when unexpected emergencies happen and could save you money on your homeowner’s insurance premiums. One finance tip for insurance is purchasing life insurance. If you should pass away, life insurance can be used to help pay off the mortgage or monthly expenses for your family.
Disability insurance is another type of insurance you may strongly want to consider. If you get injured at work, you won’t be able to cover your monthly household finance obligations. Disability insurance can step in and cover these costs for a period of time. It can also help with high medical bills that can significantly impact the overall wellbeing of your family. Home warranties can help you pay for repair costs. You can also save money by bundling all your insurance policies together.
Refinance Your Mortgage
Refinancing your mortgage can save you hundreds of dollars each year. To be successful with mortgage refinancing, make sure to get your credit rating up and know how much your home is currently worth. Shop around with mortgage lenders and get several quotes. Avoid cash-out refinancing as it can raise your premium and may cause you to lose equity if home values around you drop. Review all the terms and conditions to make sure you understand what you are financially responsible for to avoid any unexpected surprises.
Pay any closing costs or points on the refinanced mortgage. This allows more of your monthly payments to go to principal reduction. Within a few years, you could owe less than you would with a loan that has a higher interest rate. If your home value is high enough, you may be able to save money by getting rid of private mortgage insurance.
With the right finance strategy, you can save money on your home and protect your biggest asset. Use these tips to make the most of your budget and improve your bottom line. You can have peace of mind no matter what the current economic conditions and have a haven you can enjoy for years to come.