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Home: 37 - 51
37: Real estate isn't risk-free. Some housing markets, particularly in California, are prone to booms and busts. If you're forced to sell your home in a dip, you could lose money. If you move often, hefty transaction costs can wipe out any gains.
38: What your home is worth. One way to estimate its value is to look up what your neighbors' homes have sold for. Go to domania.com and enter your address to see recent sales in your neighborhood. To find the asking prices for nearby homes for sale, use realtor.com's search-by-zip-code feature.
39: Never renovate right before you sell. You can't count on recouping the cost of remodeling that quickly (if ever) -- and why go through so much effort for someone else? Don't renovate unless you plan to stay at least three years -- or if your house would deteriorate if you put off the job.
40: Adding a bathroom is the surest bet in remodeling. Homeowners who add a bathroom earn back 47 percent to 170 percent of their costs in additional resale value, according to Remodeling magazine. Other lucrative redos: a new kitchen and a deck addition.
41: Who your broker works for. A traditional real estate agent's legal duty is to the seller. You can hire an agent who specializes in representing buyers. So-called buyer's agents must negotiate the best price for the buyer, not the seller, and are freer to disclose information about the property that could affect the price.
42: Shop for a lender before a house. A buyer who is pre-approved for a loan is more attractive to sellers. For pre-approval, the lender checks your credit and income and okays a maximum loan within a certain time frame. That's different from being pre-qualified -- which means a lender tells you how much house you can afford based on your income but doesn't commit to a loan.
43: The 28/36 rule. The lenders' guideline to how much mortgage you can afford. It caps total housing expenses (including taxes and insurance) at 28 percent of your gross income and total debt payment (including cars and credit cards) at 36 percent. Some lenders will bend this rule, but a heavy debt burden leaves you more vulnerable in the event of unexpected financial setbacks.
44: How a mortgage works. In the early years of your loan, your payment goes almost entirely to interest. The portion that goes to principal gradually builds with every payment.
45: When to choose an adjustable-rate mortgage. If you'll move within the next three to five years, the interest savings are worth it. (ARM rates tend to be one to two percentage points lower than rates for a conventional 30-year loan.)
46: When to pay points to lower your rate. If you expect to stay in your home for a long time, your interest savings will more than make up the cost of the points (one point equals 1 percent of the loan). Do the math using the calculators at financenter.com or lendingtree.com.
47: When you should refinance. Think about a refi when interest rates fall one percentage point below your rate. The decision then comes down to whether you'll save enough to cover the costs. If refinancing will cut your payment by $150 a month and closing costs are $5,000, you will need 33 months to break even. But don't forget to take into account how far you've paid down your mortgage. Refinancing a six-year-old loan with another 30-year mortgage means that paying off your home will take 36 years and possibly cost you more in interest than if you'd stuck with the original loan. Another option is to refinance into a 15-year loan.
48: When to tap your home equity. Do it to improve or maintain your home, or to refinance high-interest credit-card debt, but not for luxuries.
49: Raising your deductible is the surest way to cut your homeowners insurance costs. If you increase your deductible from $500 to $1,000, you'll cut your premium by as much as 25 percent.
50: It can be cheaper not to file a claim. Don't file home insurance claims unless the bill exceeds your deductible by several hundred dollars. Otherwise, you'll usually end up giving the money right back to the insurer in the form of a higher premium. Even calling your insurance agent can show up on your claims record and raise your rates. Read your policy first to determine whether your claim will be covered.
51: What your homeowners insurance may not cover.
- The full cost of rebuilding your home. Unless you buy replacement-cost coverage, the insurer will deduct for depreciation when determining how much to compensate you for the loss of your home.
- Floods and earthquakes. A burst pipe that floods your basement is covered. But damage from heavy rain or an overflowing creek may not be. You'll need separate flood insurance for that.
- Luxury items. A basic homeowners policy covers the structure of your home, your personal belongings and liability. You'll need a rider or extra insurance for high-end items such as jewelry, cameras, computers and artwork.
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