Author: production

This will depend on what type of loan you are taking and from whom you are taking it. If you are taking out a purchase loan, then you wouldn’t likely be able to take any cash out of the transaction.

There are, however, three types of refinance transactions that you could take cash from. One is a no cash-out refinance, also called a rate and term refinance. Another is a limited cash-out refinance. The last one is just called a traditional cash-out refinance transaction. A rate and term refinance is just as it sounds. You do it because you want to replace your existing mortgage with another because the terms are better.

You do it because you are getting a better interest rate, getting a lower payment, or possibly both. If you are able to pay your closing costs out of pocket, you can even keep your same loan amount. You can also choose to roll associated costs into the new mortgage, but then your loan amount would increase. A limited cash-out refinance allows you to get a limited amount of cash back. For FHA, the amount is $500, and for conventional loans, it’s up to $2,000.

How much money as a percentage of your home value you can take will vary by program. According to a 2019 HousingWire.com article, FHA, for the first time in a decade, has lowered the total amount you can borrow against your home, including cash you take. It is now 80% of the home’s value.

Conventional loans will go higher, depending on your credit scores. Please call me with your questions regarding purchase and cash-out loans, and I’d be happy to answer them.

The two words that best describe how to prepare yourself for home ownership from a financial perspective are these: plan ahead.

Before anything else, the first thing you need to do is figure out, regardless of what prices are doing in your chosen area, what you can realistically afford for housing, month after month and beyond. You and only you will be making the mortgage payment, and you need to enter into a purchase that truly works for you.

Once you are at that point, you then reach out to a mortgage professional, we here can help, to see how much house you can afford with your realistic housing budget.

In addition to the monthly payment that you’ll be taking on, there are other considerations, such as the amount of money you’ll need to close the transaction. Beyond your down payment, there are other expenses, such as closing costs, lender fees, interest expenses, and asset reserves.

Saving money for a home purchase can take time, and in keeping with our plan-ahead theme, having at least some idea of how much you’ll need for it sooner rather than later is a good thing.

There are other considerations that will factor into the transaction and determine what interest rate you’ll pay. One of these is what your credit report looks like.

If you are carrying too much debt or the debt you have (such as credit cards) is maxed out, your lender may ask you to either pay some of it down or pay it off completely.

Are there items on your credit report that are incorrect or shouldn’t be there at all? Just as with paying off debt, this can be managed but may take time to complete.

Give us a call so we can help you get in the best buy-ready position you can be in when you start looking at homes.

What lenders mean by assets are funds that you are able to put into your home purchase transaction. These are funds to be used for the down payment, closing costs, asset reserves, and so forth.

What lenders like more than anything are what are called “liquid assets.” “Liquid” means cash or a cash equivalent, such as money sitting in a bank account. This also includes available money from a retirement account that could be transferred into a bank account.

People often ask whether cars, motorcycles, jewelry, and other items they own could be considered assets.

The short answer is no. One challenge here is that in those forms, they aren’t considered liquid. Another is that the lender would have no way to determine their true value without having them appraised, and this would make financing your home much more complex.

If you have items you plan on selling to put money into the transaction, that’s fine. What needs to happen, though, is the source of those funds and where the proceeds went need to be fully documented.

An example of this would be your selling a car on March 14 for $3,500 cash and putting the money into your bank account a day later. A lender may ask for a copy of the bill of sale and bank statements showing the deposit.

If you have questions about how assets work in the mortgage process, please give us a call, and we would be happy to answer them.

Every business venture has one thing in common: risk. Markets can change, trends can move in different directions, and technological innovation can force your business model to go from solid to so-so. When all is said and done, business owners and leadership must be prepared for risks in a variety of sectors. Comprehensive insurance coverage is a major risk reducer, but here are other ways you can reduce your risk so that insurance claims don’t happen in the first place.

Employee Safety Training

One significant cause of accidents is inadequate employee adherence to rules, regulations, and standard business and safety practices. Employee training can serve to ensure that beverages are handled carefully, spills are cleaned up quickly, and complaints or issues are promptly addressed so any potential issue does not become a true liability.

Robust Data Protection Assets

From online transactions to data-driven payment platforms, there is very little done without the use of customer data. Data is the lifeblood of every modern business. Hacking and data breaches have plagued even the largest corporations with information technology departments dedicated to this issue full-time. Ensuring your business has the most up-to-date hardware and software will help stop potential data breaches.

Cybersecurity Training

Even the best hardware and software cannot prevent cybercrimes from impacting a business if an employee makes a crucial mistake. Consistent and up-to-date cybersecurity training will help head off any attempts cybercriminals make to infiltrate your network. Teaching employees which emails are legitimate, how to avoid scam websites, and not to respond to unsolicited phone calls claiming to be from “customer support” will help mitigate the risk of falling victim to cybercrime.

Improve Security and Emergency Response Plans and Equipment

No business wants to suffer theft or accident, but there is a marked difference in results when businesses prepare before these events occur. Preventing theft or a worse crime begins by ensuring you have proper safeguards on doors and windows in addition to a monitoring alarm system. Becoming a business member of a Crime Watch or chipping in with others close by to have private security patrol the surrounding area may help reduce the risk of crime. In the case of emergencies, such as fire, proper sprinkler installation in addition to employee training can help reduce the damage incurred by your business, both to property and humans.

Review Your Coverage and Covered Employees

Sometimes accidents are inevitable, but one of the most costly mistakes an employer can make is not realizing a particular employee or category of employees is outside of their insurance coverage.

Business owners should regularly review their insurance policies to ensure that all relevant staff are covered, especially in high-turnover industries, so if an employee must take an action such as throwing out bad stock or breaking glass to provide ventilation in an emergency, it is not fatal to the business.

We can provide additional input and help you choose the right policies to keep your company properly protected.

In each of our homes lies a treasure trove of possessions. Some are utilitarian with high monetary value, such as a refrigerator, but have little emotional pull. On the other hand, there may be items handed down from past generations that would likely stir great emotions but have low market value to others. Many would value their possessions based on their attachment to them, but is that how it works when you’re shopping for homeowners insurance or renters insurance? Below are a few ways to estimate the value of your possessions before negotiating your insurance policy.

Calculating the value of your possessions

It’s not easy to calculate the value of your possessions, but using a few easy strategies, you can be well on your way to determining the amount of insurance coverage that is right for you.

1. Walk around your home or apartment and take photos or video of everything you’d like to insure.

2. Make a list of everything you have photo or video proof of, and begin to estimate each item’s worth:

For items with receipts, take photos of the receipts and any warranties.

For expensive possessions like furniture or electronics, getting the model name or number and date of purchase is crucial.

3. For clothes, shoes, nonelectronic household items, and any other household possessions, calculate the value you estimate these all to be worth.

4. Add each group together, and that is the estimated value of your possessions.

How much insurance do you need?

One handy tip is to estimate the amount of money you can afford to pay out of pocket to replace your possessions and subtract it from the total value of your possessions. Arriving at that number will ensure a lower monthly payment but guarantee the peace of mind that comes from comprehensive insurance coverage.

Don’t hesitate to reach out so you’ve got as much information as you need to make a decision that’s best for you.

Taxes weigh on everyone’s minds, and many are looking for deductions relevant to their circumstances in order to reduce or eliminate an onerous tax bill. Oftentimes, we are familiar with deductions related to our homes or businesses but are less certain about one daily part of our lives: our cars.

Do you use your car for business-related purposes?

While pure personal use of your vehicle is not tax-deductible, there are certain situations where you may be able to deduct car insurance premiums from your taxes. A word of caution: commuting to and from work in a personal vehicle does not qualify for a tax deduction.

The two most common ways to deduct car insurance premiums are:

1. If you are self-employed and the vehicle is used to further your business (such as a house painter using his truck to complete jobs)

2. If you are an employee but your employer does not reimburse you for business-related expenses related to your case (such as a personal assistant getting an employer’s dry cleaning or driving an employer around town)

Are there any other deductions when it comes to my vehicle?

Yes, you may also be able to deduct other costs such as fuel, parking fees, car repairs, and even depreciation if your costs are more than 2% of your adjusted gross income (AGI). Every penny counts, so don’t miss out on auto expense deductions that could benefit you this tax season.

Contact our office today with any of your insurance coverage questions or concerns. We’re here for you.

Business owners pour their hearts, souls, and resources into making their enterprises run well and generate profit. However, even the best-run business needs insurance for when the unexpected happens. Here are the top five insurance concerns business owners have when it comes to insurance coverage.

Data breach/cybersecurity: As major corporations battle hackers and news of data breaches makes national headlines, business owners are increasingly concerned that their online transactions and sensitive information will be exposed.

Complaint or dispute: No matter the size of the business, there are often a myriad of agreements one must enter into. Sometimes, divergent points of view lead to a payout for one party or another that the business must cover.

Injury: Injuries abound in our everyday lives. From small to large, they can cause havoc in our personal lives. These concerns are only magnified when you’re responsible for what could happen to customers, employees, and others.

Property damage: Whether property damage results from natural causes (such as a flood, hurricane, or tornado) or a burst pipe, few businesses have the cash on hand to completely repair and replace their lost inventory and supplies and get back to normal without an insurance policy.

Auto concerns: Oftentimes, personal auto insurance will not cover business activities, so any time an employee gets behind the wheel of their own personal vehicle or a business-owned vehicle, an insurance policy should be in place to cover each possible situation.

Let us help you review your policies and determine what specific coverage is best for you. Give us a call or email us today.

More than half of millennials (adults aged 23 to 38) use retail clinics, urgent care centers, and even ERs over old-fashioned visits to their primary care physicians (PCPs). Why is this, and how will it affect the future of PCPs?

One recent study found that millennials often avoid doctor visits altogether, instead first seeking information from Google and WebMD when they suffer symptoms. Because millennials grew up with access to more information and technology, they want the ease of online scheduling if they do choose to visit a doctor, and they may prefer telemedicine over traditional doctor visits.

This generation feels time-stressed, according to many reports, so waiting to see a PCP may not fit their busy lifestyles. Millennials may also lack the job security that would enable them to use paid sick time to visit their PCPs. Instead, they often wait until they are so sick that they visit urgent care facilities or the emergency room, which offers later hours.

They are taking a risk, however. According to International Business Times, this less structured medical treatment can increase medical costs and lead to poorer health outcomes. With no PCP, a lack of continuity in medical treatment when one is ill can result in a missed diagnosis, medication errors, and rising healthcare costs.

Responding to this change in medical delivery, the healthcare industry is developing new delivery models, including drop-in clinics at drugstores and increased telemedicine offerings. Driven by younger consumers’ demand for price transparency, medical providers are increasingly discussing prices with their younger patients. According to Forbes magazine, the growing cost of insurance means this generation may delay traditional visits.

Is travel getting riskier? Whether traveling for business or pleasure, travel is riskier than ever. Take the recent case of the man in Phoenix for the Fiesta Bowl who was carjacked and shot by a group of local teens. A survey cited in Business Travel News by International SOS, a travel risk-management firm, found that over half of travel managers reported increased business travel risk in 2019, and almost half believed travel risk will increase in 2020.

Security threats, civil unrest, and even weather-related risks can cause travel problems at home and abroad. A travel insurance policy can help ensure outside help if you become sick or injured while traveling on vacation or business.

Business travelers face different concerns from those traveling for pleasure; however, the risks are similar. Travel insurance can help protect you against last-minute trip cancellations and lost luggage. Some policies offer kidnap and ransom coverage, repatriation in case of injury or worse, and expert help in medical emergencies.

Consider this. You’re in Cuenca, Ecuador, and fall, suffering a compound leg fracture. Who is the best doctor in Cuenca to repair your injury? Should you have the injury stabilized in Cuenca and then travel elsewhere for further treatment? What if, after a serious injury, you need to return home for treatment? The right policy can offer emergency medical assistance and response. Highly trained medical and security personnel can direct you to the appropriate medical treatment and, if needed, return you to the US for care.

Usually, travel insurance is inexpensive. The rates vary based on the travelers’ ages, the deductible and coverage limits you select, and where you travel. While travel insurance websites offer online quotes, it’s better to work with an experienced agent to determine the broadest coverage for the best rate.

Many of us have life insurance through our employers because it is simple. All you have to do is click a box. It’s easy to choose the default, so you do it. And who could blame you? But doing so is often a mistake.

Although your company may provide a certain level of life insurance at no cost, if the insurance is worth more than $50,000, it’s not really free.

Why not? Because the tax code offers a tax exclusion for only the first $50,000 of group term life insurance coverage offered “directly or indirectly” by your employer, according to the Internal Revenue Service. If the life insurance policy does not exceed $50,000, you do not pay taxes on it. If the life insurance policy does exceed $50,000, however, you are taxed.

On the other hand, a life insurance policy that is not employer-offered is not taxed, ever. That is one reason it may be wise to shop around for your own life insurance, but there are others.

For example, if you change jobs and your health changes for the worse, you may not be able to get outside insurance. Who wants to be in that situation? You may think you are not planning to change jobs, and your health may be fine, but, if life insurance outside your employer is offered at a comparable price, why take the chance?

The solution: compare a policy offered by your employer to the exact same kind of policy you could purchase yourself and see which is ideal. We can assist you with that. If you need help, please reach out to us.