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        <title>Santa Cruz Real Estate News &amp; Information</title>
        <link>https://www.mysantacruzrealestate.com/blog/2009-12/</link>
        <description>Lifestyle, community, day trips, restaurants, real estate, home improvements, and more. Discover what makes Santa Cruz County such a great place to live. Presented by My Santa Cruz Real Estate.</description>
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    <guid>https://www.mysantacruzrealestate.com/blog/should-you-get-a-15-year-mortgage-on-your-santa-cruz-real-estate.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/should-you-get-a-15-year-mortgage-on-your-santa-cruz-real-estate.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Should You Get a 15-Year Mortgage on Your Santa Cruz Real Estate?</title>
    <description> <![CDATA[ 
There are a lot of financing options to help you buy Santa Cruz real estate, if you can meet the credit guidelines.  

Most lenders prefer to use 30-year mortgage loans.  With a longer loan term, the lender can collect more money in interest over the life of the loan.  For those who are credit-worthy, a 15-year mortgage term may be offered.  So, what is the difference between the two?  Here are a few guidelines:

What About a 30-Year Mortgage?

Thirty-year mortgages are becoming the normal term for Santa Cruz real estate loans.  The payments are usually more affordable and lenders are quick to recommend them.  Lenders are more likely to offer you a higher loan amount with a 30-year loan, but the trade off is usually a higher interest rate.  

What Are The Benefits Of A 15-Year Mortgage?

Signing up for a 15-year mortgage can save you a lot of money in interest payments.  True, your monthly payments will be higher than with a 30-year loan, but the impact on your long-term finances may be worth it. After just 16 years, you can start investing the money that you're no longer spending on your mortgage into other real estate properties or investment opportunities.  You can build your investment portfolio with just the money you would’ve spent on your monthly mortgage payment. 

What about Prepayments?

Even if you do decide to take out a 30-year loan, you can still have some of the same benefits of the 15-year loan.  By making prepayments, you can take years off a 30-year loan and still have the freedom of making smaller monthly payments, if you need to.  Before finalizing your decision, ask your lender if there are any penalties for making prepayments.

A 15-year mortgage is usually the better financial decision, because you can save thousands of dollars over the life of the loan.  The interest on a loan may be halved by choosing a 15-year loan.

No matter how you choose to finance your Santa Cruz real estate, I can help you find the home that meets your needs and budget.  Call me today at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

LINKS:

Benefits of a 15-year mortgage 

Investing

Prepayments

 
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    <pubDate>Wed, 30 Dec 2009 07:17:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/job-loss-mortgage-insurance-a-second-chance-at-santa-cruz-homes-for-sale.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/job-loss-mortgage-insurance-a-second-chance-at-santa-cruz-homes-for-sale.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Job Loss Mortgage Insurance:  A Second Chance at Santa Cruz Homes for Sale?</title>
    <description> <![CDATA[ 
Even those with a steady job and sufficient income are cautious about signing their mortgages for Santa Cruz homes for sale. They realize that signing mortgages set them up with payments for a significant amount of their lifetimes. Others worry, especially now, about losing their jobs in an unstable economy. The “what if” game begins, and potential homebuyers know that, if they lose their job, there’s a very real possibility they might lose their home.

Job-loss mortgage insurance gives homebuyers a “fallback plan” should they ever lose that stable income. It’s a definite relief to many who want to buy Santa Cruz homes for sale, but can job-loss mortgage insurance really help homeowners? Or, is it just another way to swindle the innocent out of hard-earned money?

What is it?

Job-loss mortgage insurance is exactly what it sounds like. Some insurance companies offer an insurance plan to help you pay your monthly mortgage payment should you lose your job. Although it’s been around for years, the big companies, such as Bank of America and GE Casualty, have begun picking it up in the past 10 years,.

How does it work?

Job-loss policies pay all or part of your mortgage payment if your job loss is involuntary, and some pay if you become medically unable to work. Policies vary depending on the provider, but most go into action after a month of unemployment. Most also have a wait period which means they won’t pay out during the first six months after you've purchased the policy. 

Maximum monthly benefits, what the policy covers and whether you have to be receiving unemployment benefits are just a few things to look over while researching providers. As usual with anything insurance, make sure you read the fine print.

Is it worth it?

A lot of financial advisors say not to bother with the job-loss mortgage insurance. Take the money you’d be spending on insurance and build a savings account to hold six months worth of payments. However, many first-time home buyers have depleted their reserve funds just to get the house, and may not have the money to put aside.

My advice to you…

If you’re interested in buying one of the Santa Cruz homes for sale, but you're worried about your job stability, look into job-loss mortgage insurance. Once you have the facts, policy information and coverage costs, figure it into your finances (payments for coverage vs. building a six-month fallback account) and decide what’s best for you.

If you’re looking for a beautiful home at a price you can afford, I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

Links:

Mortgage payment 

GE Casualty

Job-loss mortgage insurance

 

 
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    <pubDate>Tue, 29 Dec 2009 15:12:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/how-do-i-update-my-santa-cruz-home-to-make-it-greener.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/how-do-i-update-my-santa-cruz-home-to-make-it-greener.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>How Do I Update My Santa Cruz Home to Make It Greener?</title>
    <description> <![CDATA[ 
There are many different ways to update your Santa Cruz home to make it more eco-friendly.  

• In your Santa Cruz home, install ceiling fans and thermal windows.  Ceiling fans are low energy, cost effective ways of cooling your home without using the air conditioning.  Thermal windows offer insulation from outside heat and cold.  

• Use foam caulking around any cable lines or cords leading to an exterior wall.  This will provide insulation against temperature changes. 

• In the winter (or in climates that are cool year round), use the natural sunlight during the day.  Opening the drapes and allowing the sun to come in decreases the amount of energy needed to light and heat your home.  Closing the drapes at night adds another layer of insulation against temperature changes.

• Installing motion sensors on your light fixtures may help to decrease energy usage as well.  The lights will shut off automatically when not in use.  

• Use a power strip that has an on/off switch.  These power strips can be used for video games, stereos, DVD players, and other items that are not in use on a constant basis.  Turning off the switch when they are not in use saves energy.  

As a National Association of Realtor's Green Designee, I have become a residential real estate professional advocating education and the adoption of green real estate principles. As buyers and sellers continue to address issues of energy efficiency and smart building practices, the market will continue to evolve and green properties will become increasingly prevalent. The Green Designation sets me apart showing I am committed to the growing and positive force behind the green building movement.

If you'd like to buy an eco-friendly home, I can help.  Call me at 831.662.6522, or email me at lauren@laurenspencer.com for more information.

 

Links:

Thermal windows

Foam caulking 

Motion sensors 

 
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    <pubDate>Sun, 27 Dec 2009 13:27:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/first-steps-to-getting-a-mortgage-for-your-santa-cruz-real-estate.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/first-steps-to-getting-a-mortgage-for-your-santa-cruz-real-estate.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>First Steps to Getting a Mortgage for Your Santa Cruz Real Estate</title>
    <description> <![CDATA[ 
You’ve reached that time in your life where you’re ready to buy Santa Cruz real estate.  Even though the mortgage approval process can be intimidating, you can get yourself ready to apply for a loan.  These are the first steps to buying your home:

Make a List

First, make a list of your finances.  Include all your income, and factor in your normal monthly debts.  Miscellaneous bills, like your daily coffee or weekly magazine, should be listed too.  Write down everything that you spend each month. 

Calculate what 28 of your income is.  Most loan officers recommend not spending more than 28 on your housing costs.  You may not want to take on a mortgage loan for the maximum amount offered without consulting your list to see what money is actually available for you to spend.

Decrease Your Debt

Once you’ve have detailed your finances, it's time to make a budget.  A good budget can help you eliminate wasteful spending which will allow you to pay off more of your debts.  When planning your budget, don’t forget to include some personal money.  

Start with the small debts first.  Pick the credit card with the highest interest rate and smallest balance and work from there.  After one debt is paid off, use the extra money that you’re saving from the first card, and pay off the next.  This way, you should be able to pay your balances down quickly. 

It only takes a couple of months of good payment practices to begin to see your credit score go up. With a good credit score, you can get a better interest rate.  This will save you thousands of dollars in mortgage payments over the life of the loan.

Save For the Down Payment

You’re ready to start saving for the down payment on your Santa Cruz real estate.  It has to be paid up-front at the loan closing, but sometimes the seller will pay the closing costs.

If you’d like more tips on how to buy Santa Cruz real estate, subscribe to this blog.  It's free and easy.  Just enter your email address in the subscription section, and you'll automatically receive tips like this in your email inbox a couple of times a week.  

LINKS:

Decrease your debt

Make a budget 

Credit score
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    <pubDate>Tue, 22 Dec 2009 08:22:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/does-your-arm-increase-mean-santa-cruz-foreclosure.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/does-your-arm-increase-mean-santa-cruz-foreclosure.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Does Your ARM Increase Mean Santa Cruz Foreclosure?</title>
    <description> <![CDATA[ 
With the current Santa Cruz foreclosure woes, and the strains of the economy these days, many people are worried about what they’ll do when their ARM (adjustable rate mortgage) resets.  Here are a few suggestions to help you weather the current financial storm:

What is an ARM?

ARM refers to a mortgage loan that has a variable interest rate.  The amount of the monthly payments will change several times over the life of the loan.  ARMs usually have a lower introductory interest rate than a fixed-rate mortgage.  After a period of time, the interest rate is recalculated, resulting in a higher interest rate and monthly payment. 

Get Out Your Loan Paperwork

Many homeowners are worried about what will happen to their monthly payments when the ARM resets.  Foreclosure is a real worry.  The best way to avoid Santa Cruz foreclosure is to know exactly what the terms of your loan agreement are.  Look for the date that the interest rate is set to change.  Find out what the cap is on each interest rate adjustment, and what the cap is for interest increases throughout the life of the loan. 

After you have gathered that information, you can calculate what your ARM will reset to.  It’s best to know what the worst-case scenario payment could be when your ARM adjusts.  This information can help you determine if you are going to need help getting your loan payments manageable.  The next step is to make a detailed list of your current and future income and bills.  This will give you a better understanding of your financial status.

Call Your Mortgage Company

If, after you make this list, you can see that you are going to have trouble making the difference in the monthly payments, call your mortgage company.  It’s best to call them before you miss a payment.  They may be able to renegotiate the terms of your loan for you.

If you're ready to sell your home, I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

LINKS:

Foreclosure 

ARM

Financial status
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    <pubDate>Sun, 20 Dec 2009 06:20:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/i-admit-it-im-a-biased-santa-cruz-real-estate-agent.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/i-admit-it-im-a-biased-santa-cruz-real-estate-agent.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>I Admit It – I’m a Biased Santa Cruz Real Estate Agent</title>
    <description> <![CDATA[ 
People have asked me about FSBO (For Sale By Owner).  They want to know whether it’s a good idea to use an agent and the answers to many other questions on this topic. I admit it; I’m biased. I am, after all, a Santa Cruz real estate agent. 

I’ll even go a bit farther and admit that I’m biased about my hometown. As far as I’m concerned, if you’re going to buy a house, you should use me as your agent and buy a house in this city. But then, that’s what most real estate agents will tell you.

Without the bias, however, there are some real issues with not using a Santa Cruz real estate agent (or any agent, anywhere, for that matter).  And, there’s one BIG issue…

The Contract

Okay, here’s the deal. A real estate contract, like any contract, is a sealed deal once the papers are signed. It’s legally binding and will be upheld in any court of law in the country, with few (and rare) exceptions. 

If you don’t understand the contract you’ve signed, that’s too bad.  Lack of understanding does not constitute a dismissal of said contract. While some do manage to back out of a contract once it’s signed, to do so is expensive and stressful.

A wide variety of contracts can be borrowed from anywhere and have been. FSBO sites, as well as many other online sites and offline brick and mortar businesses, have “sell your house” contracts. For that matter, a contract written up by the owner, signed by the buyer with a notary stamp, without any legal representation on either part, is still legally binding:

I, the undersigned, am selling my house to the buyer for the agreed upon amount of money.

BuyerSellerNotary

A real estate agent will generally use a standard contract through your state’s Association of REALTORS® or their particular brokerage. What’s the difference, you ask? Quite a lot, but the biggest is that the contracts that agents use are created to fit the laws of each state. In addition, these contracts are not prejudiced towards the buyer or the seller.

Lastly, the buying and selling of real estate is full of potential issues and is a long, involved process. Call me proud and tell me I’m bragging if you want, but I’m good at what I do as a Santa Cruz real estate agent. It’s not something I think everyone can (or should) do. 

So, if you’re considering going FSBO, take a second gander at this particular article and think hard. All great agents out there sincerely want to help you meet your goals of buying or selling a home.

If you’re looking for someone to guide you through the pitfalls, I'd be honored to help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

Links:

FSBO

real estate contract

Back out of a contract
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    <pubDate>Fri, 18 Dec 2009 16:21:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/what-does-it-mean-to-go-green-in-your-santa-cruz-home-construction.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/what-does-it-mean-to-go-green-in-your-santa-cruz-home-construction.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>What Does It Mean To Go Green in Your Santa Cruz Home Construction?</title>
    <description> <![CDATA[ 
Working to have a safe Santa Cruz home environment is important to everyone.  We want our children to have safe water, clean air, fresh food and a healthy earth for their future.

One area where you might consider decreasing your impact on the environment is in your own home construction. 

There are several ways you can have a safe and clean green home construction. 

• Find a “green” builder to help with your Santa Cruz home.  Search the Internet for professional green builders.  It takes a special contractor to coordinate the elements of home building to ensure maximum energy savings.  Buying green materials is just one step toward having a green home.  To achieve ultimate efficiency, the different structural parts of plumbing, electricity, gas lines, and framework need to be coordinated.

• Buy green materials from different vendors.  Shop around to ensure you are getting the best deal.  One vendor may sell stone at an exceptional price, but his timber may be overpriced.  Natural supplies can be in short availability in some areas.  Natural builders and vendors are working together to build a greener home construction industry, but it is still a business.  It is your responsibility as the homeowner to make sure that you are getting the best deal.

• Continue the &quot;green&quot; theme with your home decorations and furnishings.  The construction of your green home saves resources and energy.  You can reduce your impact on the environment even further by using energy saving appliances, eco-friendly interior paint, and sustainable wood flooring in your home.

Building your Santa Cruz home using green construction is a great start to a cleaner, brighter future.  As a National Association of Realtor's Green Designee, I have become a residential real estate professional advocating education and the adoption of green real estate principles. As buyers and sellers continue to address issues of energy efficiency and smart building practices, the market will continue to evolve and green properties will become increasingly prevalent. The Green Designation sets me apart showing I am committed to the growing and positive force behind the green building movement.

I can help you learn more about green home construction options.  Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

Links:

Professional green builders 

Green materials 

Furnishings 

 
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    <pubDate>Wed, 16 Dec 2009 08:12:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/national-foreclosure-trends-and-santa-cruz-real-estate.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/national-foreclosure-trends-and-santa-cruz-real-estate.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>National Foreclosure Trends and Santa Cruz Real Estate</title>
    <description> <![CDATA[ 
Everybody wants to know how the housing market is doing, especially if they own Santa Cruz real estate. I try to keep the newsy pieces to a minimum and spend most of my Internet space on helpful pointers, but a lot of readers have asked about the market. In response to high demand, here’s a peak at the current national foreclosure trends:

Foreclosure Trends

It’s a wonderful thing to own any kind of real estate (although I’m partial to Santa Cruz real estate, of course). Unfortunately, many people have lost their homes due to foreclosure since the housing crisis started; there have been over 7.8 million since 2007. California, Florida, Arizona, Nevada, Illinois and Michigan have been topping the count for foreclosures, adding up to 62 of the nation’s foreclosures. 

California’s numbers reached 349,435 foreclosures last month, and it was feared that those numbers might escalate. However, there’s some good news there. Even though homeowners are still teetering, lending institutions are caving in under government pressure to work with those homeowners. For that matter, they may even be working with the government to stem the deluge of foreclosures.

HousingPredictor.com conducted a survey of homeowners that shows we may have as many as 25 million foreclosures before everything is said and done, mainly due to homeowners who are tired of watching housing prices fall. Such a glut of the market could cause some serious repercussions for the economy. However, again, there are some positive points. 

For instance, current mortgage interest rates are ranging from as low as 4 to 5.5, cut almost in half from the “housing boom” years. While housing prices may be dropping, the fall is slowing down. As well, lower prices mean more affordable homes. While this may not be a good thing for homeowners, it’s an excellent thing for home buyers. 

As prices drop and homes become more affordable, the glutted housing market of foreclosed and for sale homes is slowly shrinking. As the reserve market (the number of houses per capita that are for sale) shrinks, consumer confidence will build up (something we desperately need). Housing demand will rise, surplus will shrink, and prices will stabilize.

Of course, in the meantime, while you’re waiting for things to stabilize, hold on to your Santa Cruz real estate. Take advantages of the tax breaks available to upgrade your existing property, maybe get the renovations done you’ve always wanted. There are still opportunities in this market – you just have to find them

If you’re a buyer looking for a great home, act now to find amazing bargains.  I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

Links:

Stem the deluge

HousingPredictor.com

slowing down
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    <pubDate>Mon, 14 Dec 2009 12:12:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/how-much-mortgage-can-you-really-afford-for-a-santa-cruz-home.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/how-much-mortgage-can-you-really-afford-for-a-santa-cruz-home.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>How Much Mortgage Can You Really Afford for a Santa Cruz Home?</title>
    <description> <![CDATA[ 
Owning a Santa Cruz home can be a sign of independence and success.  It allows you to build up equity and the mortgage interest and property taxes are tax-deductible.  Can you afford it, though?  

Reputable lenders look at a list of criteria to decide how much they’ll loan you.  This list includes:

• Credit score• Existing assets including cash• Car leases or loans• Credit card balances• Debt consolidation loans• Home equity loans• Installment loans• Student loans• Other monthly debts• Size/source of your down payment

If you’d like to get an idea of what you can afford before talking to a lender, here are a few tools you can use to decide whether a Santa Cruz home is within your budget:

• As a rule of thumb, your house hunting budget shouldn’t be more than 2.5 times your pre-tax annual income.  If you earn $50,000 a year, your budget for house hunting should be around $125,000.

• Your Housing Expense Ratio, which is principal, interest, taxes and insurance (PITI) shouldn’t be more than 25 to 28 of your pre-tax monthly income.

• You're Debt-to-Income Ratio should be no more than 36 of your pre-tax monthly income.  This is the ratio between how much you owe and how much you earn.

• Use an online calculator to figure how much home you can afford.

“Qualifying for” and “can afford” are two different things.  Shopping for a Santa Cruz home within your budget will save you a lot of heartache now and in the future. 

If you'd like help determining how much mortgage you can really afford, I can help.  Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

LINKS: 

Housing Expense Ratio 

Debt-to-Income Ratio

figure how much home you can afford

 
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    <pubDate>Sat, 12 Dec 2009 09:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/holiday-candle-safety-in-your-santa-cruz-condo.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/holiday-candle-safety-in-your-santa-cruz-condo.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Holiday Candle Safety in Your Santa Cruz Condo</title>
    <description> <![CDATA[ 
More festive candles are used in your Santa Cruz condo during the holidays than at any other time of year, so it’s important to review the safety rules.  Here are few tips to keep your condo safe:

Candle Placement Preparation

It may sound silly, but you need to prepare before you light that candle.  First figure out where you want to place the candle in your Santa Cruz condo.  

• Find a heat resistant surface.  • Make sure there aren’t any books, papers, curtains, or bedding nearby.  • Watch out for flammable holiday decorations.  • Keep the candle away from windows and vents, and check for signs of a draft.  • Place the candle where children and pets can’t reach and where it isn’t likely to be bumped into. Getting Ready to Light the Candle

• Before burning the candle, review the manufacturer’s instructions.  Most recommend that the wick be trimmed to ¼ inch before lighting.  • Make sure to use only approved candle holders.  Using an unapproved glass holder could cause it to burst and send glass everywhere.  • Place candles at least three inches apart so the additional heat doesn't cause them to melt improperly.

Burning the Candle

Now that the candle is lit, make sure to never leave it unattended.

• Watch the candle to see if it smokes or flickers a lot.  This could be a sign that the candle isn't burning properly.  • Leave about two inches of wax when you extinguish the candle.  Most manufacturers recommend that you don't burn the candle all the way down.  

Putting the Candle Out Safely

The safest way to put out a candle is with a candle snuffer.  

• Don’t use your fingers or blow out the candle; the flame may travel and cause a fire.• Never use water to put out a candle; the wax may splatter and burn you.  • Wait until the wax is cooled before you move the candle.

Candles are a beautiful way to decorate for the holidays in your Santa Cruz condo.  By following these simple safety suggestions, you can help to ensure that your holidays are happy and safe.  

If you’d like to be in a new condo before the next holiday rolls around, I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

 

Links:

Heat resistant

Candle holders

Candle snuffer
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    <pubDate>Thu, 10 Dec 2009 11:24:00 -0800</pubDate>
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