Real Estate Information Archive

Utilizing your Albuquerque home's equity can be a strategic financial move under the right circumstances. Home equity, the portion of your home's value that you own outright, can be a powerful asset when used wisely. Here are some scenarios where tapping into your home equity makes sense:

Home Improvements and Renovations

Investing in home improvements can not only enhance your living experience but also potentially increase your home's value. Projects like kitchen remodels or adding an extra bathroom often offer good returns on investment. Before proceeding, consider the potential value addition against the cost and ensure the improvements align with your long-term housing plans.

Debt Consolidation

If you're juggling multiple high-interest debts, using home equity to consolidate these into a single, lower-interest loan can be beneficial. This move can simplify your finances and save you money in interest over time. However, it's crucial to avoid accumulating new high-interest debts afterward.

Education Expenses

Funding education can be a significant expense. Using home equity to cover tuition fees or other education-related costs can be a cost-effective alternative to student loans, especially if the interest rates are favorable.

Emergency Fund

In times of financial emergency, such as unexpected medical bills or job loss, your home equity can provide a safety net. It's advisable to have other emergency funds in place, but home equity can serve as an additional buffer if needed.

Investment Opportunities

If a promising investment opportunity arises, using your home equity to invest can be a way to grow your wealth. This could include purchasing a second property or funding a business venture. Ensure that the potential returns justify the risks involved and that you're not over-leveraging yourself.

Retirement Planning

For long-term financial planning, such as retirement, your home equity can play a role. Whether it's downsizing to release equity or taking out a reverse mortgage, it's important to consider how your home equity fits into your overall retirement strategy.

Before tapping into your home equity, it's essential to weigh the pros and cons. Consider factors like current interest rates, your financial stability, and your long-term goals. Consulting with a financial advisor can provide personalized guidance based on your situation.

Remember, using home equity means putting your home on the line as collateral. It's a decision that should not be taken lightly, as defaulting on the loan could result in losing your home. Therefore, it's crucial to have a solid repayment plan in place.

In conclusion, using your home's equity can be a smart financial strategy, but it requires careful consideration and responsible management. Ensure that you're using it for purposes that will enhance your financial position and align with your future plans.

For more detailed information on using home equity and to explore the best options for your circumstances, consider reading further on the subject from reputable sources such as Forbes Advisor and Quicken Loans.

HOT ALBUQUERQUE LISTING OF THE WEEK

This is your rare opportunity to own a beautifully renovated, 5-bedroom gem in the Eldorado School District! With en suite bedrooms both downstairs and upstairs, this one has so much to offer. NEW in 2022: Roof, kitchen cabinets with granite, stainless appliances, carpet, tile, plumbing fixtures, doors, garage door, lights and windows. Sellers recently updated landscaping and railings throughout - this is turnkey! Downstairs features one bedroom with en suite bath, chef's kitchen, oversized living area and a cozy reading nook with a wood-burning fireplace. Upstairs feels comfortable with oversized bedrooms and a primary suite with a wall of windows for spectacular mountain views! This large lot showcases several outdoor areas including a courtyard, outdoor firepit.

Learn More!

Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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Homeowners who bought a home in Albuquerque after December 15, 2017 can deduct interest paid on the first $750,000 of their mortgage when itemizing their tax return. Other homeowners can deduct interest on the first $1 million of mortgage debt.

The following is a guide to what to know about the mortgage interest deduction and how it works.

The Basics

The mortgage interest deduction allows homeowners to reduce their taxable income by the amount paid in mortgage interest over the year. Homeowners with a mortgage can lower their tax bill if they keep records of interest paid. In general, interest on the first $1 million of a mortgage for a primary or secondary residence can be deducted. However, for homes purchased after December 15, 2017, the deduction applies only to the first $750,000 of mortgage debt.

What Qualifies?

If you’re deducting mortgage interest for your primary home, typically, the following will count:

• Your property can be a mobile home, house, apartment, condo, co-op, house trailer, or even a houseboat
• Your home has to be the loan’s collateral.
• The home needs to have sleeping, toilet, and cooking facilities.
• If you get a housing allowance from the military or through the ministry that’s not taxable, you can still deduct the interest for a mortgage.
• A mortgage you get to buy out the other half of your home in a divorce also counts.

If you have a mortgage on a second home, the following will qualify you:

• You don’t need to use the home throughout the year
• The house has to be the loan’s collateral
• If you rent out your second home, you need to be there for the longer of at least 14 days or over 10% of the number of days you rented it out

Points are prepaid interest you can get on a loan. You can deduct your points gradually through the life of your loan, or if you meet certain requirements, you can deduct them at the same time. The eight requirements you have to meet to deduct your points all at once include:

• The mortgage has to be for your primary home
• It’s an established practice to pay points in your area
• Your points can’t be abnormally high
• Your points aren’t for closing costs
• The down payment you make is higher than your points
• The points are calculated as a percentage of your loan
• The points are on your settlement statement
• You use a cash method of accounting on your taxes

If you paid a late fee that was not for a specific service related to your mortgage loan, you can deduct it. You can also deduct any prepayment penalty you incurred for paying your mortgage early as interest.

If you take out a home equity loan and use the money to buy, substantially renovate, or construct a home, the interest is tax deductible. However, if you use the loan for expenses unrelated to your home, the interest cannot be deducted.

What’s Not Deductible?

Most extra principal payments on your mortgage, homeowners' insurance, title insurance, and settlement costs are not deductible. Down payments, earnest money, deposits you forfeit, and interest on reverse mortgages are also non-deductible.

To claim a mortgage interest deduction, first look for Form 1098, which your lender will send in January or early February. This form details your total mortgage interest and points paid for the year, and your lender also sends a copy to the IRS. You will receive a Form 1098 if you paid at least $600 in mortgage interest, including points, during the tax year.

When you file your taxes, itemizing deductions is necessary if you want to claim more than the standard deduction.

Itemizing your taxes takes more time, but if your standard deduction is less than your total itemized deductions, you should itemize to lower your tax bill. Use Schedule A to calculate your itemized deductions. Tax software can also guide you through the itemization process.

HOT ALBUQUERQUE LISTING OF THE WEEK

Beautiful Home located in the highly desirable gated community of Sara's Meadow! Featuring a bright & open floorplan, cozy fireplace in great room that opens to the adjoining breakfast nook & kitchen with double sliding doors & picture window providing abundant natural light. All kitchen appliances, washer & dryer convey! Primary Suite suite offers a separate slider door for backyard access; ensuite with soaking tub/shower combo & ample walk-in closet. Separate living area can be used for hobbies, exercise space, TV room, etc. Second bedroom has its own walk out patio. Ceramic tile thru-out except bedrooms, raised ceilings, custom window coverings, & more. Wagner heating & cooling system & water heater approximately 2 yrs old. Low maintenance yards. Close to trails, shops, & restaurants!

Learn More!

Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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Radon. We've all heard about it. We know it can be harmful. But what exactly is Radon and how can it be a danger in your Albuquerque home?

Radon is an invisible, odorless gas that can seep into various types of structures, including but not limited to basements, slabs and crawl spaces. The only way to know if it is present at dangerous levels is to test for it. Radon is produced when uranium breaks down in soil, rock and water. It can come into your home through cracks in floors and walls, construction joints or gaps around service pipes, electrical wires and sump pits. According to the EPA, nearly one out of every 15 homes in America has elevated radon levels. An estimated 20,000 deaths from lung cancer are blamed on radon exposure.

Breathing in these radioactive particles, drinking water with high radon levels, or being exposed to radon for long periods of time can make you susceptible to lung damage and lung cancer. If you are a smoker, this will increase your chance of developing lung cancer by 10 times.

It may take years before health problems appear. Your chances of getting lung cancer from radon depend mostly on:

• How much radon is in your home
• Where you spend most of your time (the main living and sleeping areas)
• The amount of time you spend in your home
• Whether you are a smoker or have ever smoked
• Test Your Home for Radon Gas Exposure
• Old homes, new homes, homes with basements and homes without basements can have radon problems. 

If you suspect your home may have radon issues, you should hire a professional tester. You can also use a short-term (2-90 day) or long-term (more than 90-day) test kit. You will get a more accurate result from the long-term kit. Most hardware stores will carry these kits.

While there is no level of radon that is considered completely safe, the EPA recommends reducing radon levels in your home if your long-term exposure averages 4 picocuries per liter (pCI/L) or higher. A pCI is a measure of the rate of radioactive decay of radon gas. This decay causes radioactive particles that can get trapped in your lungs when you breathe.

Reduce Radon Gas in Your Home

If you home tests positive for radon, you can take steps to reduce those levels. This includes sealing cracks in floors and walls and increasing ventilation though sub-slab depressurization using pipes and fans. This work should be done by a certified contractor who has the skills to make sure the work is done properly. The standards set for such a certification are from The American Association of Radon Scientists and Technologists and the National Radon Safety Board.

You should continue to test for radon after the work is done and every two years after that. January is a good time to remember to test for radon, as The U.S. Environmental Protection Agency has designated January as National Radon Action Month.

Radon exposure can pose a threat to the health of you and your family. Make sure you take action to reduce your exposure to Radon today.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6538 DESERT SPIRIT Road NW, Albuquerque, NM 87114

Welcome home to the in-demand Anasazi Ridge neighborhood! This charmer features NEW carpet and an open floorplan. Gas range in the kitchen with a spot for bar-height seating makes this inviting for everyone! The large master bedroom features an oversized walk-in closet and an en suite with both a soaking tub and separate shower. Enjoy the 10' ceilings, beautiful oversized tile floors, and cultured stone exterior accents. This low-maintenance gem features a covered patio with pull-down shades for your outdoor enjoyment. Convenient location makes this one move-in ready!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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We’ve all heard the stories. An overcharging contractor, a subcontractor who did shoddy work, or a contractor who disappeared altogether. There are unfortunately an almost infinite number of bad apples in the Albuquerque construction and home improvement industries. In order to gain your business, they promise the world, but then run off with your money. These scams target many unsuspecting homeowners every year.

The question is, how can you avoid being taken advantage of by these crooked contractors?

Read reviews and do your research

Reviews of contractors are easier to find now than ever before. Searching online yields a wealth of information, and you should take advantage of it. Choosing the first contractor in Albuquerque you find can be tempting. Reading reviews and doing your research can save you both time and money. You could end up saving thousands of dollars and avoid a lot of headaches by spending a few minutes reading online. 

Get multiple estimates, and don't be cheap

You should only hire a qualified contractor if you plan to do home improvement work. It's important to get multiple estimates and research different contractors before selecting one. The first contractor you find or someone who offers low prices may seem appealing.

In the long run, these choices can end up costing you more, as inferior workmanship and low-quality materials can lead to expensive repairs. To make an informed decision about which contractor is right for your project, make sure you get multiple bids and research your options before choosing one. 

Do background checks

A thorough background check is essential for large projects. There are a variety of important pieces of information that can be revealed by a background check, including whether the individual has any outstanding debts or legal issues. Furthermore, they can provide information about the quality of their previous work, including complaints from customers and previous employment. Often, background checks reveal things that weren't revealed in reviews, so they are an important part of the research process, particularly if you are hiring someone for a large or expensive project.

Insist on a written contract

A written contract is essential when dealing with any type of contractor. In many cases, contractors claim that they don't normally do things that way, so they don't have to provide a written contract. However, regardless of the words that a contractor uses, it is crucial to have a written contract detailing the terms and conditions of your job.

The written contract provides you with peace of mind by describing exactly what services and materials the contractor will provide, as well as giving you legal recourse in case something goes wrong. When a contractor balks at signing a written contract, this should raise a red flag and you should look for someone who can meet your needs and requirements. A well-written contract cannot be understated, so no matter how persuasive a contractor seems, insist on one!

Never pay a contractor by the hour

It is usually best not to pay contractors by the hour. There are several drawbacks to this approach that can ultimately result in unnecessary costs and frustrations for both parties. To begin with, contractors are incentivized to work more hours than are required by paying by the hour. You may be nickeled and dimed with extra requests and delays in order to get paid more money, even if doing so makes little sense from an operational standpoint. Paying by the hour can also lead to budget overruns and frustrations due to unforeseen costs.

Pay with a credit card

Paying for contractor services with a credit card is always the best option. You will have an added measure of protection in case the work is not completed as planned, or if the quality is not satisfactory. Credit card payments can be disputed with your credit card company if there are problems. By contrast, if you pay cash or write a check, you have no recourse if the job is not done correctly. 

Don't pay the full amount until the job is done

It is not uncommon for contractors to request full payment up front and then fail to deliver. As the work is being completed, it is wise to pay in installments and inspect the work before paying the full balance. By doing this, you will have a chance to address any problems that may arise during the work process. Additionally, by paying in installments during the course of the project, you can ensure that you are getting high-quality work for your money and help prevent any unscrupulous contractors from taking advantage of you. 

The best way to avoid getting ripped off by a crooked contractor is to do your homework. Get references, check them out, and ask lots of questions. Also, be sure to get everything in writing, including a detailed estimate of all costs. By following these simple tips, you can protect yourself from becoming a victim of contractor fraud.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

7408 KRISTA Drive NE, Albuquerque, NM 87109

Come and view this beautiful corner lot in the NE Heights! Home has 4 bedrooms (possible 6), + 2 remodeled bathrooms. There so many updates on this home including: NEW roof and skylight on front patio (2020), Exterior painted (2020), Interior painted (2021), NEW kitchen flooring (2022), NEW wood laminate flooring (2022), NEW dishwasher (2022), NEW stove (2021), NEW fixtures (2021), NEW bedroom carpet (2021), Both bathrooms were remodeled in 2018! This home will not last long - schedule an appointment today!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Mortgage rates under 3% are certainly appealing. But can you actually get one? The best rates might not be available to you if you don't have excellent credit. Still, you may be able to refinance your Albuquerque house if you qualify.

Minimum credit score

You will have more refinance options if your score is above 700. Although, contrary to popular belief, you can still qualify with a lower credit score.

“Credit requirements vary by lender and type of mortgage. In general, you'll need a credit score of 620 or higher for a conventional mortgage refinance,” said Experian. “Certain government programs require a credit score of 580, however, or have no minimum at all. As is true for other types of loans, the higher your credit score, the more likely a mortgage refinance lender will be to work with you. Not only are your chances of approval higher, but you'll typically receive a lower interest rate and more favorable loan terms than qualifying borrowers with lower scores.”

Going with a higher rate

In the long run, any rate drop will save you money, even if you are not eligible for the lowest rate. A .25 reduction in your mortgage rate will save you almost $100 a month. The savings will, of course, need to be weighed against your refi costs and the time it will take to recover those costs.

Buying down your rate

If you don’t qualify for the lowest rate and you want to go lower, you can buy down the rate. “Mortgage points are one way for homeowners to lower their interest rate,” said Bankrate. “When you pay for points on a mortgage, you are actually paying interest right now for the loan. In return, the homeowner can lock in a lower and discounted rate. The rate depends on how many points are purchased. Your mortgage rate will drop more if you purchase more points.”

One point is the same as a .25% discount in the mortgage rate, which will cost you 1% of the total mortgage amount. To lower your mortgage rate by a quarter point would cost you $3,000 on a $300,000 mortgage. “Homeowners can buy more than one point, depending on their financial situation.”

HOT PROPERTY OF THE WEEK!

508 ORTEGA Road NW, Los Ranchos, NM 87114

Plenty of room for your HORSES & HORSE POWER! Gorgeous approx 1.26 acre NV Village of Los Ranchos Horse Property. One of a kind, rare opportunity to own private gated valuable Sub-dividable lot. 4BD/3.5 BA renovated 2015 w/hardwood oak floors, 2015 roof, HVAC, HWH, windows, insulation, refrigerated air/heat throughout home. 1000sf grand sunroom w/ tile setting the stage for peace & relaxation. Recessed Lighting & Skylights! New SS appl! This home shines like a diamond! Not incl in TSF Finished 1979sqft heated/cooled 6 Car Tandem Garage/Shop w/220! The possibilities are truly endless.1100sf Horse barn, plus storage, 2 patios, circular drive w/50+ trees & fenced lawn.1 mile to Alameda Open Space, trails & Rio Grande River, & 15 mins to Airport. Perfect for entertaining. RV parking/NO HOA!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

We take appliances for granted until they break. Then our entire day goes down the drain. A repair can be expensive and time-consuming. However, sometimes you can do the repair yourself. Here are 5 repairs you can do yourself, and two you shouldn't.

Replace the Thermostat in The Dryer

In most cases, the thermostat is the problem with a dryer that won't heat up. A new thermostat can be purchased at most hardware stores for under $80, a considerable savings over a dryer repair, which generally costs around $180. In your dryer manual, you'll find the location of the thermostat, and you can watch a YouTube video if you need further guidance if needed.

Clear the Drain in the Dishwasher

If your dishwasher isn't draining, it's likely that there is a clog. You can clear this up with a shop vac. You may be able to avoid costly dishwasher repairs by plugging in the vacuum hose, operating the vac for a few minutes, then testing the dishwasher again.

Replace the Fan in the Freezer

It could be a bad freezer fan that's causing your freezer not to keep things cold. This fan circulates the cold air throughout the freezer. If it's broken, cold air won't reach those areas. A new fan costs about $85 at your local hardware store. It can be replaced in a few minutes by unscrewing and connecting it, and then replacing it. You've just saved a lot of money.

Clean Coils in the Refrigerator

Dirty coils can cause your fridge to lose its cooling capacity. You can find them under or behind the unit, and they can accumulate a lot of debris, dust, and pet hair. If that happens, the coils can freeze up, rather than cool the inside. Clean coils by unplugging the fridge and sliding it out, then vacuuming, dusting, or wiping them down. Plug it back in and give it an hour to cool back down to its normal temperature.

Unclog the Burner in the Gas Stove

Gas stoves that have trouble lighting or emit a gas smell might be the result of a clogged burner. If gas and electricity are working properly, you may just have to fix the burner. Once the gas is shut off to the stove, use a small brush and cleaning solution to scrub out the burner head. Restart the gas and the burner should light right up. 

When to Call a Pro

The fixes above are easy. But here are two things that definitely need a pro.

Repairing the Icemaker Broken on the Fridge

In the event that your ice maker unexpectedly stops working when still connected to water, the compressor is most likely to blame. In some cases, icemaker repair can cost up to $300. Icemakers are among the most expensive components of a refrigerator, and often require some major work to the refrigerator itself. This will need a pro, as things can easily be made worse if the repair is done wrong. 

Repair the Microwave

It is best to contact an expert if the microwave you own is more expensive and needs to be repaired. Do not attempt to make repairs yourself. Those devices can leak microwave radiation when not properly sealed, so call a pro for help before you start fiddling around. Or just buy a new microwave if it's old enough and a replacement will cost the same as repair.

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

HOT HOME LISTING OF THE WEEK!

7508 CALLE MONTANA NE, Albuquerque, NM 87113

5 Bedrooms / 3 Bathrooms (2 full, 1 half) / 3011 Square Feet

Beautiful 5 bedroom Stillbrooke home in highly sought after planned community! Main level features grand open floorplan w/gorgeous custom staircase; spacious great room opens onto breakfast nook & kitchen w/granite countertops, island & breakfast bar. Cathedral ceilings & Clerestory windows makes this home bright & light. Flexible floorplan could be 2 living areas: office & 5 bedroom plus loft, OR formal dining, greatroom, 5 bedrooms & loft/media area. Master suite on main level has backyard access, spa like en suite & huge walk-in closet. Also, a secondary bedroom on main level. Upstairs features a huge loft/media room, 3 more very large bedrooms, & additional full bathroom. Lovely landscaped backyard w/water feature & fully walled for privacy. New carpet 2019, & updated SS appliances.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

HOT HOME LISTING OF THE WEEK!

10032 BRIDGEPOINTE Court NE, Albuquerque, NM 87111  $459,000

3 Bedrooms / 3 Bathrooms (2 full, 1 half) / 2466 Square Feet

Delightful Custom Home in the prestigious gated golf course community of Tanoan! Soaring cathedral ceiling & grand staircase welcome you through the impressive foyer. This immaculate home features clerestory, bow & picture windows invitng the natural light in & raised tray ceilings gracing several rooms thru-out. Cozy fireplace is heart of family room w/custom wainscoting flowing into ample dining room & open kitchen w/island, eat at bar, SS appliances & gorgeous granite counters. Upper level features 3 privately situated bedrooms w/stunning views from their own balconies; Master suite w/spa like en suite with stainglass window, sitting area w/fireplace & balcony to enjoy city & mtn views. Lush backyard w/covered & open patios is a bird watchers dream-w/flagstone & lawn w/brick border.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team