It's that time again…time to reflect on the previous year and prepare for the New Year ahead. If you had resolutions last year that you didn't achieve by the end of the year, trust me you are not alone! I have come to realize that in order to truly make a change in my life I have to have an action plan and I have to actually do the tasks required to make it happen (as silly as that may sound). Are you ready to make changes in your daily routines and start your New Year's Resolutions on the right path? If you want to have something that you have never had or do something that you have never done there is no-one stopping you but the person in the mirror. The great news about this is that you also have the power within you to make it happen and there are great resources available to help guide you into making changes today and lead you towards achieving your dreams. Here are my tips to help you create and triumph over your New Year's Resolutions. Make it a great year!

Letting Go

Before you can even begin working on yourself in the New Year or at any point in time in your life you should take some time to reflect on where you have been and let go of things that may be holding you back. Letting go of stress, worry and fears can make a major impact on your resolutions in 2014. Check out this great article that lists 20 things to let go of to help you feel better physically, emotionally and spiritually.

Develop a Personal Mission Statement

When it comes to mission statements the first thing that comes to mind are businesses and non-profit organizations, however have you ever thought of creating a personal mission statement? A personal mission statement is about you and your values and true vision for your life. The mission statement should be applicable to every area of your life and it should be something that will serve as a reminder when you feel that you may be getting off track of your main goals in life. Ask yourself what you see as your purpose in life; what are you most passionate about, and what are your values? Don't be worried if this takes you some time, there is no one path or one method as this should be something very personal for you. Here are some steps that may be useful in the process of developing a personal vision and mission statement.  You may also be interested in reading or listening to Stephen R. Covey's Habit 2 of The 7 Habits of Highly Effective People.

Setting S.M.A.R.T Goals

Have you ever wondered how to set goals or where to begin? What do you need to set your goals? First, be sure that you are setting S.M.A.R.T goals. S.M.A.R.T is an acronym for specific, measureable, attainable, realistic, and timely.  These goals can be a combination of short term and long term goals but make sure that each one can be defined by these 5 steps.  If your goal is to get in better financial shape here is an example of a S.M.A.R.T goal: To decrease my personal credit debt by $4,800 by December 31, 2014 with the remaining $200 of each paycheck. For an additional explanation of setting S.M.A.R.T goals for your New Year's Resolutions.

Believing in Yourself

I deeply value the quote from Napoleon Hill which states, “Whatever the mind of man can conceive and believe, it can achieve." From personal experience, I can attest that it is not easy to change because it feels uncomfortable at first but if you believe in yourself and take the actions necessary to reach your goals you can do it. You must have a desire to achieve your dreams and believing that you can do it can make all of the difference in the world.

A Cash-out Refinance is when a homeowner decides to take some of the equity out of their house in exchange for cash that can be used in any way he or she would like. There may be good reasons for considering a cash-out refinance but it is also wise to know the way they work to be aware of the impact a cash-out refinance may have on your mortgage.

Wise Financial Reasons for a Cash-out Refinance

The best financial reasons taking cash out of your house involve investing that money elsewhere where you may get a higher return on investment. This may involve taking the funds and investing them in the stock market, bond market, or possibly investing in a new start-up company on the ground floor. It may also be wise if you plan on using this money to invest in repairs to the home itself. Similarly, it’s common for people to take cash out of their primary home and use that money for down payment and closing costs on an income property that allows them to increase their monthly income through the rents they receive.

Financial Emergencies

Additionally, a cash-out refinance can help people who need a large amount of money within a relatively short amount of time. These may involve situations where bills may be headed to collections and a homeowner’s credit will be negatively impacted. This may be due to divorce, serious injury or illness, or to pay funeral expenses for someone who does not have life insurance. If other avenues of payment have failed, a cash-out refinance may be worth considering.

Personal Reasons for a Cash-out Refinance

People also may choose to take equity out of their home to give money toward a loved one for some purpose. Commonly this is to assist adult children by gifting down payment money for their own home or helping pay for a college education.

Other reasons may simply be for personal enjoyment. Many people have chosen to take equity out of their homes to pay for a car, boat, or other vehicle or to pay for their dream vacation.

Things to be Aware of with a Cash-out Refinance

When getting a cash-out refinance, note that this cannot be done through a USDA loan and it is usually advisable to do so as a VA loan (if eligible) or as a conventional loan. Additionally, the interest rates tend to be higher for these mortgages than for traditional purchases or a rate-term refinance. There are also minimum amounts of equity that must be left in the property as well, so the amount you take out of a property may not be as much as you would hope. Finally, the new mortgage starts the term over, so choosing to refinance may end up costing you more money over the long term since most of your early mortgage payments will be going to interest rather than the principal balance. 

The beginning of a new year comes with the opportunity for improvement and renewal. According to experts, making resolutions and sticking to them can lead to realistic lifestyle changes. Since most healthy habits begin at home, here are some of the most popular New Year’s resolutions—and ways your home can help in keeping them.

1. Eat Healthier and Lose Weight Heading into 2017| one poll found that 21.4% of respondents wanted to change their diet and lose weight. Having the right setup at home can encourage healthier food preparation and make eating in more enjoyable. Rethinking your kitchen’s layout or adding a few small appliances can make it easier to prepare more meals at home. Plus, the health benefits can compound when you prepare and eat fresh fruits and vegetables from your own garden.

2. Exercise More| Most of us recognize the benefit of getting our bodies moving, both in terms of weight loss and overall health, but finding time is a challenge. That’s where a home gym comes into play. It doesn’t have to be anything fancy, but having a designated, ready-to-use space for a treadmill, yoga mat, and free weights cuts down on travel time to and from the gym. Water-based exercises are options for pool owners and can help justifying becoming one.

3. Get Organized| Another popular resolution is to become more organized. As you look around your home, there is likely to be room for improvement. Whether it’s a new closet system, clearing out the garage, or optimizing your home office, maximizing your living space can help reduce stress and improve family time in the long run.

4. Spend Time with Family| Spending quality time with the people who are important to you is another key focus. That may mean converting a room or area of your home into a family den, complete with games, an entertainment system for movie nights, and comfortable seating. Alternatively, maybe more dinner parties should be in your future, along with an upgrade to your current dining room or outdoor spaces for al fresco meals.

5. Save More Money| Making better financial choices and saving more money are goals many people aspire to throughout the year. By making a few energy-saving changes, you can reduce the amount you spend on your monthly bills. Installing a programmable thermostat, sealing drafty windows, and replacing incandescent bulbs with energy-saving alternatives are just a few of the ways your home can contribute to the cause.

6. Get More—and Better—Sleep| A look at resolution topics that have previously trended on Twitter found many people seek more sleep and relaxation. A new mattress, blackout shades, or even a fresh coat of paint in a soothing tone can make a bedroom more conducive to getting those highly desired and necessary Zs.

Whatever your goals are as you begin 2018, here’s to achieving them!

How do I find a good rate?

Generally speaking, rates within a specific type (fixed vs adjustable rate) and term length (15, 20, or 30 year terms) will tend to be very competitive within a given region. You should expect to see most lenders within about .25% of each other.

The bigger impact on what an interest rate will be is determined by the credit score and the percentage of the purchase price that you put down for a down payment. So, rather than looking for a good rate, it’s often better to work on your credit and let the good rate find you.

How do I avoid “junk fees?”

There are always fees that you wouldn’t expect (unless you are involved in the real estate business). Most fees are predetermined by local governments for recording fees, title and escrow companies for their work, and the lender’s fees. Lenders’ fees either tend to be a flat fee determined by the company or as a percentage of the loan amount charged as “points.” Title and escrow companies’ fees are usually determined by a base amount plus a percentage related to the loan amount, and local governments determine their fees based off budgetary needs.

Having said that, there are fees that appear as “junk.” Requirements for checking flood zones, running a credit report, checking on tax returns, and other fees are often imposed on the lender who then passes the cost to the borrower as a standard practice. This makes some of the fees seem like junk, but they tend to be unavoidable regardless of the lender. The true “junk fees” that can be avoided are usually solved by having a lender that you know, who has worked in the area of your future home, and who can then work with companies removing fees that may be required for other regions of the country but may not be required where your future home is found.

Types of Loans

Since the housing market crash of a decade ago, interest rates have been near historic lows. This makes fixed rate mortgages more appealing because they are the safest bet. Most people choose a 30-year fixed rate mortgage to keep their monthly payment low and borrowers have the option of paying more to minimize the amount lost to interest. A 15-year mortgage saves a great deal of money on interest because rates are lower and it’s being paid out over a shorter period of time, but the monthly payments will be higher.

Despite their bad reputation, there are situations where an Adjustable Rate Mortgage (ARM) may be helpful for a buyer if the borrower is informed. If the loan amount is very high (think $400,000+) even slightly lower rates can save people a lot of money while the rate is still “fixed” for an initial time (usually, 3, 5, 7, or 10 years). Regardless of the loan amount an ARM may be a good option if the borrower thinks it unlikely that they will be in the house for a long period of time. The safety valve is that borrowers can nearly always refinance into a fixed rate mortgage down the road if they choose to keep the home.

Need More Help?

The best way to have these questions answered is to speak with a knowledgeable mortgage broker or loan officer licensed through the Nationwide Multistate Licensing System and Registry. Ask your realtors for the mortgage professionals that they would recommend. These people have special training and education to help you prepare and walk you through the mortgage process.    

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For many homeowners, thoughts of warmer weather and sunnier days grow stronger as their nests empty and retirement approaches. Even as they look at their options, many may still want to maintain roots in the community they’ve long been a part of and where their families and friends remain. As you work with these “snowbirds,” here are a few things to keep in mind as you help them achieve their goal of belonging in two places.

1. Entertain the Idea

When your clients are considering a second home, ask them to think about how they intend to use it. Do they envision staying there for the entire fall and winter? Will they host holidays? Do they have young grandchildren that will be visiting often? The answers to these and other questions can help you narrow your search to homes and communities that will provide a fit.

2. Match Amenities to Interests

One of the big attractions of warmer climates is the opportunity to stay active and spend more time pursuing beloved pastimes. From golf courses and swimming pools to gardening clubs, learn more about how they’re hoping to spend their time in both locations to better understand their housing options.

3. Location Matters

Some snowbird clients may not be thinking about location past how far their new home is from a beach. However, there are practical considerations that might need to come into play. For instance, some clients may need to have certain health care facilities nearby. Still others might want to be situated close to an airport if they’re still working or have family that they plan to see frequently.

4. Maintaining the Lifestyle

Another important factor for them to consider is what it will take—both in terms of effort and cost—to maintain both homes. For warm-weather properties, this includes keeping up with landscaping, pool cleaning, and pest and mold control. Meanwhile, homes located in colder areas may require snow removal, ensuring plumbing works in freezing conditions, and maintenance of furnaces, fireplaces, and chimneys.

5. Downsizing for Ease

Some snowbirds might decide that maintaining their large family home while also keeping up a warm-weather property isn’t worth the time and effort. In this case, they may want to consider downsizing to a house that offers simpler upkeep. This allows them to keep a place where they can still see and entertain family and friends during the milder months in the community they’ve always known and then migrate back to warm weather in winter.

6. To Rent or Not to Rent

A second home can also mean an additional source of income for those who are interested in renting out either property when they aren’t using it. Marketing your expertise in helping snowbird clients navigate the ins and outs of becoming a landlord, particularly in a different state, can boost your own business while strengthening your client relationships.

Becoming a snowbird is really the best of both worlds for many retirees. They get to maintain a familiar lifestyle in a northern climate in milder months and enjoy the perks of warm-weather living during the colder months. As a Real Estate Agent, you can play a crucial role in helping them live the dream.

 Is a client ever too young to buy a home? Technically, as long as a person is old enough to sign contractual agreements in your state, they are old enough to purchase a home. Whether they are ready for the responsibility has much more to do with financial maturity than age.