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How to Maximize Your Profit Without Spending a Dime
For the past couple of years, sellers really benefited from the real estate market. In many instances, simply announcing a sale brought on a feeding frenzy of buyers. Many of those buyers paid well above asking simply to secure the sale. Unfortunately, the days of bidding wars and low to no effort by the seller appear to be waning as the market begins to balance itself. Fortunately, while you must make some effort to snag a buyer, you do not need to break the bank to maximize your profit on a sale. Use these cost-friendly tips to make sure you receive the highest sale price possible for your Inland Empire property.
How to Maximize Your Profit Without Spending a Dime
Proper Pricing is Rule #1
If a home sits on the market for several weeks, most likely, the list price is to blame. Always, always talk to your REALTOR® about neighborhood comps. These show you what similar homes to yours sold for recently. That provides a picture of what you may realistically expect to receive for your Inland Empire home. Then, listen to your real estate agent’s opinion. They know the market and current trends. They also want to sell this home as much as you do. So, their educated advice is well worth considering when deciding on a list price.
Additionally, think strategically about pricing. Perhaps list it slightly below market. Or consider a sales trick as old as time…the power of “9’s”. For example, instead of listing for $605,000, price it at $599,999 instead. This sounds slightly better. Also, it helps you with the search parameters for buyers looking online. Let’s say they want to search for properties under $600,000. So, they set their search at homes between $500,000 and $599,999. If you price your property at $600,000, it will not show up. But, if you price it slightly less, it will.
Maximize Your Online Profile
Studies show that a majority of buyers utilize the internet at some point during their home search. In fact, in many cases, this may be the first time they see your property. Therefore, you need to ensure that they see it in its very best light. Professional photos and videos make all the difference in how buyers assess your property. Oftentimes, real estate agents include these with their services.
Also, make sure you let your REALTOR® know all of the positive aspects of your home that appeal to a buyer the most. For example, how close is it located to parks, entertainment, shopping, schools, and restaurants? Did you recently upgrade appliances, the HVAC system, or flooring? Is the backyard fenced-in (good for kids and pets)? Single-story properties appeal to older buyers and those with physical limitations. These should all be included in the description to offer as precise a picture for the buyer as possible.
Clear Out the Clutter
Finally, get rid of the “excess”. Pack up, donate, or dump items you do not use on a regular basis. This includes packing away all personal items such as family photos, children’s artwork, and personal collections of any sort. Take one-third to one-half of the clothing out of each closet. This makes the closets all appear much larger (something all buyers want to see). Pare down your kitchenware to just the basic necessities for this same reason. (Buyers open every cabinet, every drawer, and every door.) Store all of these as well as your bigger, bulkier furniture in a storage unit or at a friend’s/family member’s home if possible until you sign your final paperwork.
When you decide that you want to list your Inland Empire home on the market, contact me. I am always happy to help.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
How to Avoid Buying an Overpriced Home
Many of today’s Inland Empire home buyers search online at some point during their home-buying process. While prices may still be up from last year, buyer demand has cooled off a bit. That moved the Inland Empire real estate market to a more balanced state. Unfortunately, some sellers refuse to adjust their prices accordingly. They still believe that buyers are willing to pay whatever the seller wants no matter how crazy that price may be. Avoid overpaying for your next property by knowing how to identify an overpriced home.
How to Avoid Buying an Overpriced Home
How Long Has It Been on the Market?
The more days a property sits on the market, the higher the probability that price plays a big part in that. Realtor.com reported that Riverside homes spent a median of 49 days on the market before going under contract in July. Some experts believe that sellers should consider a price reduction if they see no action within the first three weeks. If you see a property listing that says it has been on the market for longer than this, there is a good chance that it is due to being an overpriced home.
But do not rely totally on a listing’s “days on market”. Most online listings include a history of when a listing has been on the market and for how much, including when price changes went into effect. Sometimes, a seller may withdraw their listing for a few weeks and relist it again so that it shows up as a brand new listing. If you see several listing dates within the past few months, this may indicate that the seller is asking too much for it.
What Are the Comps in the Area?
Ask your REALTOR® for a list of comps nearby. If they fall well below the list price of the Inland Empire home you are interested in even though they are similar in size, amenities, and location, it is probably overpriced. Confer with your REALTOR® about a realistic price to offer that falls more in line with other homes in the area.
Have Homes Around Them Sold Quickly?
If other homes in the neighborhood sold quickly but the one you are interested in has not, it could either mean that the asking price is too high or other buyers saw flaws that would be insurmountable (or too expensive) to overcome at the price the seller wants. Check out the days other listings in the neighborhood spent on the market and how much they sold for recently to determine whether or not overpricing may be the case here.
How Many “For Sale” Signs Do You See in the Neighborhood?
Finally, take a look around the neighborhood. How many “for sale” signs do you see? Hardly any or none at all typically means that homeowners are happy there. Dozens of “for sale” signs should throw up a huge red flag for you about how the homeowners feel about living there. It may also mean that sellers used an overpriced neighbor’s home to justify overpricing their own home. Let your REALTOR® do some digging to find out the truth.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
How to Get Rid of Stinky Odors Before Listing Your Home
When you decide to sell your Inland Empire home, you need to tackle a few chores first. Staging. Repairing. Cleaning. But one thing we sometimes overlook is how our house smells. Even if you are fastidious about cleaning your home, it may include some odors that you just grew used to while living there. Unfortunately, buyers may take a whiff and decide that they do not want to make your home their home. Avoid this negative reaction. Get rid of stinky odors before you even list your property and buyers will never know the funky smells existed in the first place.
How to Get Rid of Stinky Odors in Your Inland Empire Home
Pet and Cigarette Odors
Two of the strongest smells (and some of the toughest ones to eliminate) are cat urine and cigarette smoke. For pets, deep clean the carpets and use a pet enzyme removal product. Then, empty out the litter box daily and before every showing. For cigarette smoke, you need to deep clean all soft surfaces (such as upholstered furniture carpet, drapes, etc.). But you also need to scrub the walls, baseboards, ceilings, and windows to remove any residual tobacco smell. Even if a smoker goes outside, they bring those smells inside with them on their clothes, in their hair, and on their fingers.
Smelly Carpets
Speaking of carpets, these tend to soak up stench from everyday wear and tear. You can get rid of stinky odors by first thoroughly steam cleaning the carpets. This lifts dirt and grime from way down deep under the carpet. Many grocery stores and home improvement stores rent out steam cleaners. But if the carpet is well beyond a good steam cleaning, you may have to rip it up and either replace it with a new carpet or hardwood. If your Inland Empire home includes carpet in the bathroom, replace it with tile right away. No buyer wants to see (or smell) that.
Moldy Smell in the AC
Sometimes, water droplets (aka, condensation) collect inside your air conditioning unit. This may lead to a moldy/mildewy smell. First, tackle the funk with a good scrubbing. Clean off the coils, as well. Then, replace the filter. Sometimes the smells get trapped in there, too.
Burning Smell From the Furnace
Like the AC unit, your furnace may accumulate dirt and dust that settles in the floor ducts. That is why you may detect a slight burning smell when the furnace first gets turned on after the weather begins to cool off. A thorough cleaning of your air ducts should remedy this situation right away.
Mustiness
Typically, mustiness results from a water leak. But do not be scared off by that. All leaks should be identified and remediated right away. For smaller leaks, white vinegar and a dry cloth help eliminate the musty smell. Larger leaks may require more intense efforts.
Stale Air
Lastly, if you find that the air in your Inland Empire home simply smells “stale”, open your windows for a few hours once a week to let the fresh air in. Before a showing, make sure you open all of your windows as well. The circulating air helps move stale air out and allows fresh air inside.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
Tax Benefits of Owning a Home
One of the benefits of owning a Southern California home is that you pay your own mortgage rather than paying someone else’s. Another benefit is that you build up equity for yourself. Also, there are several tax benefits to owning a home. These reduce your adjusted gross income. In turn, that lowers the amount of taxes you pay Uncle Sam. The following are a few of the benefits you may want to keep in mind if you plan on buying a home anytime soon.
Tax Benefits of Owning a Home
You Can Deduct Your Mortgage Interest
One of the positive things you can say about paying higher interest rates is that you can deduct your mortgage interest at tax time. However, there is a limit to the mortgage debt you can claim the deduction on. For married couples filing jointly, the limit falls in line with the interest paid on the first $750,000 in mortgage debt. For individuals or married couples filing separately, that limit cuts off at the first $375,000. However, if you purchased your home before December 16th, 2017, the limit is $1,000,000/$500,000. Make sure you check your closing documents or 1098 you received from your lender to determine how much you paid in interest. This may be included in your mortgage interest deduction at tax time as well.
You Can Deduct Any Mortgage Points Paid
Sometimes, buyers pay “points” when they buy a home. These points help lower their interest rate. So, one of the other tax benefits of owning a home is that you may deduct these points from your taxes for the year you purchased or refinanced your home. This will also be shown on your 1098.
Your Private Mortgage Insurance May Be Deductible
If you put less than 20% down on your Inland Empire mortgage loan, your lender charges you Private Mortgage Insurance (PMI). The amount varies depending on the percentage you put down. According to Freddie Mac, expect to pay anywhere from $30 to $70 a month per $100,000 for PMI. There are limits to what you can deduct based on your household income. If your adjusted gross income falls below $100,000 (for married couples) or $50,000 (individuals or married filing separately), you can deduct the entire PMI paid. Household incomes above $109,000/$54,500 adjusted income cannot deduct any PMI. If your adjusted household income falls between these two amounts, you may deduct a percentage of your PMI.
A Portion (or All) of Your State and Local Taxes May Be Deductible
Another one of the tax benefits homeowners may see is from state and local taxes (SALT) paid throughout the year. The only caveat is that you must itemize your deductions to do so. They cap out at $10,000 for both state and local taxes combined for the year for both married couples who file jointly and individuals. That cap goes down to $5,000 if you are married but filing separately.
You Can Claim a Capital Gains Tax Exclusion
You sold your Inland Empire home at a profit. Congratulations! They call that profit “capital gains”. This is considered income. As such, it may be subject to income tax. Fortunately, you may exclude the first $500,000 in profit (for married couples) or $250,000 (for individuals or married, filing separately). So, if you and your spouse paid $150,000 for your home originally and sold it for $500,000, you would receive that $350,000 in profit tax-free. But, if you as an individual paid $150,000 and sold it for $500,000, you would still have to pay taxes on $100,000 of profit ($350,000 total profit minus the $250,000 capital gains exclusion). However, to claim a capital gains tax exclusion, you must have used your home as your primary residence for two of the last five years in order to qualify for this full exclusion. If you lived in it for less time, you may be able to claim a partial exclusion based on the time you lived there.
Other Tax Credits Available
In Riverside County, a homeowner who occupies the property they purchase as their primary residence may claim a Homeowners’ Exemption. This translates to up to $7000 off your property’s assessed value at tax time. That saves you roughly $70 per year. (Every bit helps, right?)
I am not a tax expert. Nor do I claim to be. Always, always talk to your tax preparer about these deductions before you sign your tax documents and send them in.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
What to Expect During Your Final Walk-Through
You saved up for your downpayment and closing costs. After searching and searching, you found an Inland Empire home you absolutely loved. The sellers accepted your offer and you entered escrow. You might have waived a contingency or two to make the deal happen. But one thing you should never waive is a final walk-through. Why? It provides the last opportunity before the house is yours to make sure it looks exactly how you expected it to look when you signed the sales contract.
What to Expect During Your Final Walk-Through
Who Goes to the Walk-Through
Basically, it’s just you (the buyer) and your REALTOR® in attendance. The seller and their agent do not attend the final walk-through. This allows you to look over everything inside and out at your own pace. You want to make sure that all of the fixtures and appliances that were supposed to be included in the sale are still there. Plus, you want to double-check that the seller made any repairs required in the sales contract.
When Does It Take Place?
Typically, your final walk-through takes place 24 hours before closing. Your agent contacts the seller’s agent to schedule a time to access the Inland Empire home for your walk-through. Take as much time as you need to complete a thorough visual inspection of the property. There is no time limit.
What to Look For
Your agent should bring along the seller’s disclosure form, your inspection report, and any amendments made to the sales contract regarding repairs or replacement. Your agent may even ask for receipts from the seller for any repairs made after your home inspection (performed at the beginning of escrow). Use these to guide your walk-through. You need to confirm that all repairs have been completed.
What to Do If You Find a Problem
First, notate the problem(s). Talk to your REALTOR® about each one. Is it a big problem or a small issue? With smaller issues, you might want to overlook them. Are they worth waiting a few more days for the seller to fix or can you handle them on your own after closing? But with larger issues (roof replacement, missing appliances or fixtures, property damage done after your initial inspection), you might want to either wait for the seller to fix them or have your agent negotiate a credit at closing. However, a credit means that the burden of repairs falls on your shoulders later. Even so, it gets the sale completed on time.
When Should You Walk Away?
Legally, you may walk away from the sale if any part of your sales agreement has not been met by the seller. However, you should stay flexible if you truly love the house. Again, overlook the smaller things that you can take care of later. And try to negotiate any big issues before deciding whether to cancel the sale or not.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
First-Time Home Seller Tips
It is inevitable. At some point, most first-time home buyers eventually become first-time home sellers. The Inland Empire real estate market (much like the rest of the country) experienced one heck of a ride over the past few years, While we are still considered a seller’s market at this point, things are beginning to move towards a more balanced market. That may actually help deals happen rather than hinder them. But before you list your property for sale, make sure that you follow these first-time home seller tips and avoid common mistakes first-timers often make.
First-Time Home Seller Tips
Price Your Property Appropriately
Professionals cite pricing as the #1 reason most properties stay on the market for an extended period of time. In this fast-paced real estate climate, you need to price your Inland Empire home according to the most current trends. In fact, sometimes pricing it just below market may not only nab you a buyer quickly but could, in fact, garner enough interest to receive multiple offers. Oftentimes, this drives your final sale price up as well. But talk it over with your REALTOR® first because you run the risk of only receiving one offer at the below market list price. They can help you determine whether this is a good course of action or not.
Home Staging
Staging can mean the difference between a home sold in a matter of days and one that stays on the market for a while. Also, studies show that staged homes sell for more money than unstaged ones. Professional stagers cost money. But they also know how to make each area of your property look its absolute best. If this is not in your budget, ask your REALTOR® for staging tips that you can do on your own.
Make Your Home Available for Showings at Any Time
Selling a home is not always convenient when it comes to time management. But you should never limit your availability for viewings. This may mean taking Fido for a long walk or running errands with the kids while a buyer takes a tour of your home. (Yes. You DO need to be out of the house when this happens.) But if that is what it takes to get a sale done, that’s what you need to do.
Consider Offers Carefully
Finally, you do not always need to accept the first offer you receive. Money is great. But it is not the only reason to accept an offer. Other things to look for include strong financing (as well as the type of financing), the amount of time requested in escrow, and contingencies. More contingencies provide more of an opportunity for something to go wrong. At the same time, an incredibly high dollar amount offered for a property “sight unseen” may be too good to be true. Let your REALTOR® do their homework to see whether or not an offer is as good as it looks before accepting or countering.
As a first-time home seller, you may think that sky-high prices are the norm. They’re not. Please remember that our hot, hot seller’s market appears to be cooling off a bit. Now, that does not mean that prices or sales will plunge into oblivion anytime soon. But as interest rates rise and financing becomes more expensive, buyer interest may wane. If you receive a good, solid offer, take it now. If you wait for prices to “reach their peak”, you may miss out on a good deal. We cannot predict when that may happen. Work in the market that is happening right now, not what you “think” may happen in the future. And contact me when you are ready to sell your Inland Empire home.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
Weighing the Pros and Cons of a 15-Year Mortgage vs a 30-Year Mortgage
Saving up for a down payment. Finding the right house. Negotiating a sale. Then, financing it all. So many steps go into purchasing an Inland Empire home. When it comes to deciding on financial terms, one of the things your lender will discuss with you is whether you want to go with a 15-year mortgage or a 30-year one. Each option comes with both pros and cons. Learn as much about both options before you make a final decision.
Weighing the Pros and Cons of a 15-Year Mortgage vs a 30-Year Mortgage
15-Year Mortgage
Pros – As the name says, a 15-year mortgage gets paid off in half the time as a 30-year mortgage. This means less interest paid throughout the life of the loan. And by “less”, I mean over $100,000 less. For example, let’s say you pay $400,000 for an Inland Empire home. You put 10% down. You save as much as $180,339 in interest if you go with the 15-year loan. If you pay it off in less than 15 years, you save even more money in interest. Since the shorter term is considered less risky by lenders, they offer lower interest rates for a 15-year mortgage, too. When you put less than 20% down on a shorter-term loan, the FHA charges less for PMI.
Cons – With a shorter term, you pay more per month…hundreds more. For example, using the $400,000 Inland Empire home discussed above, your monthly payment goes up by $761. That may put this loan out of reach for many home buyers. However, if you really want to pay that mortgage off in 15 years, it may mean lowering the amount you pay for the home (like from $400,000 to $300,000 or less). This severely limits your options, especially in today’s market. Finally, a higher monthly mortgage payment limits your available cash for things like investing, maintenance, and entertainment.
30-Year Mortgage
Pros – A lower monthly payment provides the biggest draw for a 30-year mortgage. This also allows more flexibility in how you pay your loan. Your lender gives you a set number that you absolutely must pay for your mortgage each month. But, if you find yourself able to pay more at any time during the life of the loan, you can make extra payments that go directly to your principal. Chipping away at your principal even with just an extra $100 a month can pay off a 30-year mortgage in 24 years. Plus, it saves you tens of thousands of dollars in interest at the same time.
Uncle Sam allows you to deduct your mortgage interest from your taxes. Since the majority of your mortgage payment consists primarily of interest in the first few years of your loan, that can be a huge number come tax time. Plus, the lower payment frees up more money for other things.
Cons – On the flip side, lenders charge a higher interest rate for a longer-term loan. Since the term is longer, you also pay much more in interest over the life of the loan. Likewise, a longer term means that it takes longer to build up equity.
When it comes down to it, whether you should go with a 15-year mortgage or a 30-year mortgage depends on your financial means as well as your ultimate goal. Do you want to pay off your loan quicker and can afford to pay several hundred dollars more each month? Then, the 15-year mortgage is ideal. But, if you need a lower payment spread out over a longer period of time (at least for now), choose the 30-year mortgage option. Always discuss this with your mortgage provider. They can answer any questions you may have.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
Pricing Your Home to Sell
The days of receiving tens of thousands of dollars above asking in mere days of listing your Inland Empire home may be a thing of the past. Yes. We are still in a seller’s market. And, yes, we sometimes still see sellers who receive more than one offer on their homes. However, over one-third of the houses on the market in Riverside County saw a price cut last month. Staging your home and making necessary repairs before you list are only parts of the total home sale equation. If you wish to find a buyer quickly, you really need to price your home correctly to begin with. That means paying attention to current market trends.
Pricing Your Home to Sell
Hire a Local REALTOR®
How does hiring a local REALTOR® help you with pricing your home to sell? Well, a local REALTOR® knows the local market. They also know current market trends in that specific area. Fortunately, a good Inland Empire REALTOR® also has many resources at their fingertips to help you set a competitive price for your home that brings buyers to your door.
Using Comps
Your REALTOR® can research recently sold “comps” in the area for you. These are properties similar in size, location, and age to your own. Look for price reductions and how long they sat on the market before they went under contract. Multiple reductions and long days on the market usually mean the seller priced their property too high.
Withdrawn and Expired Listings
See how many sellers ended up withdrawing their listings from the market. Also, take note of expired listings. Withdrawn means that the seller decided to take it off the market. Expired means that the listing agreement between the seller and their agent ran out of time without a sale taking place. Ask your agent to find out why these listings either were withdrawn or expired. Many times, the answer could be due to listing it too high. However, that is not always the case.
Strategize
You can handle pricing your home one of two ways: at market value or slightly below market value. Either way, keep emotion out of the equation. Your REALTOR® will give you their opinion of a good list price based on comps and current market trends. And I highly recommend that you take their experienced opinion into account when you decide on a list price. Ask them if they believe listing it slightly below market value might work in your favor. Keep in mind that this is a gamble because you may end up only receiving one offer at that lower price. On the flip side, it might also encourage several buyers to put their offers in, creating a bidding war and driving the price up. Discuss this option with your REALTOR® to determine if that is a strategy you wish to pursue or not.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
Ways You Can Finance Your Home Renovation
Outdated kitchen. Overrun backyard. Unusable space. If you have a renovation project on your mind for your Inland Empire home, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality (and finance your home renovation).
Ways You Can Finance Your Home Renovation
Cash
Paying in cash is the most straightforward financing option to finance your home renovation. Just save until you have enough money to cover the expenses. This will help eliminate spending outside your budget. However, it can also extend your timeline.
Mortgage Refinance
If you have been making payments on your Inland Empire home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance. This reduced your payments and frees up some money to help finance your home renovation project(s).
Cash-Out Refinance
You can tap into your home equity and borrow up to 80% of your Inland Empire home’s value to pay off your current mortgage plus take out more cash to cover the renovations. This option is encouraged only when you’re making improvements that will increase the value of your home. Why? Because this can add a lot of interest and fees. However, if your home’s value shot up since you bought it and your equity shot up along with it, it may very well be a viable option to finance any home improvement project you have in mind.
Home Equity
Getting a home equity line of credit allows you to borrow money against the value of your Inland Empire home. You receive usually up to 80% of your home’s value, minus the amount of your loan.
Before you decide on a specific choice, weigh each option first. Talk to your lender. Ask them any questions you may have about these options. Then, you can make an informed decision.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
How to Pay Down Debt the “Right” Way
You want to buy an Inland Empire home. However, rising interest rates concern you. You need to get your credit in tip-top shape to receive the best mortgage rates available. A FICO score of 620 may get you approved for a loan, but an 800+ gets you the best rates. That can save you hundreds of dollars a month on your mortgage payment. One of the ways to boost your score is to pay down your debt. This may come as a shocker, though. Did you know that the way you pay down debt makes a difference in how quickly it affects your credit score?
How to Pay Down Debt the “Right” Way
Tackling your debt is always a good choice to make before you take on a home mortgage. Be that as it may, some ways prove more beneficial than others. First, you need to look at installment debt vs. revolving debt. Then, think about whether you want to work on high-interest accounts or your balances.
Installment vs. Revolving
It helps to know the difference between these two types of debt. Installment debt applies to loans for things like mortgages, automobiles, personal loans, etc. With these, you pay a specific amount of money each month for a set period of time. Balances on revolving accounts go up and down depending on what you charge or pay each month with no set time frame for paying it off. Most financial experts suggest you pay down debt on your revolving credit first. Then, tackle your installment loans. Revolving credit carries more weight on your credit score than installment loans. Therefore, paying revolving accounts down first brings your FICO score up faster.
High-Interest Accounts
You have two options when it comes time to pay down debt on your revolving accounts: work on the highest interest accounts first or work on paying off accounts with the lowest balances first. Most credit cards base their interest rates off the prime rate set by the Federal Reserve. So, with rates on the rise, it might behoove you to work on your credit cards with the highest interest first.
High Balance Accounts
Your other option to pay down your debt to your best advantage is to pay off the smaller balances first. Psychologically, a zero balance provides a sense of accomplishment. In turn, it helps motivate you to continue paying down your debt.
How to Pay Down Your Debt
Whichever method you choose, use these steps to pay off your balances. Look over your budget. Figure out how much you can afford to put towards paying off the debt on the first account you choose. Then, only pay the minimum due on your other accounts. Once you pay off the first account, choose your next account. Take that same amount you paid each month for that first account and then add the minimum on top of it. Continue doing this until all of your revolving debt is gone. So, let’s say that you pay $200 per month on your first card. Your minimum payment on your next card is $49 per month. Once you pay the first card off, you start paying $249 per month towards the second card. If you have more accounts, you do the same thing. Simply roll the amount you were paying on the last card on top of the minimum you pay on the next account. This gets is paid off faster without you paying more out of pocket. Before you know it, all accounts show a zero balance!
If you have a card that allows you to do an interest-free balance transfer for a certain amount of time, this may also provide a quicker (and cheaper) alternative to paying down your debt. But you need to make sure that you pay that debt off in the zero-interest timeframe or else you will be hit with a huge interest rate at the end of it. Let’s say that a card offers 0% interest on balance transfers for 12 months. Take the total amount you transfer and divide it by 12. For example, you have $4800 total debt mixed among three revolving accounts. If you transfer those balances into one account with 0% interest and pay $400 per month (plus whatever transfer fees are due), all of your debt is paid off in a year with no further interest due.
Paying down your revolving debt helps boost your FICO score the fastest. A higher credit score opens you up to more possibilities for mortgage loans. And that is always a good thing.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
